Best Real Estate Lawyers in Peachtree City, GA

Let’s talk about financing contingencies.nnOur firm recently obtained a complete victory for a client and return of the entire $100,000 EMD without having to go to court. The seller claimed it was entitled to the EMD and an additional $100,000 due to the expiration of the financing contingency. Their initial demand was $200,000.nnRather than going straight to court, we save the client money by writing a letter brief to the seller persuading it that, under GA law, the financing contingency was a condition precedent to the buyer’s obligation to close the deal and absent language otherwise, if the contingency fails, the EMD gets returned to the buyer. The law holds that financing contingencies are put in contracts for the buyer’s protection.nnAfter our initial letter, seller reduced their demand from $200,000 to only $25,000. After our second letter, they agreed to release the entire deposit.nnLesson here for sellers: if you agree to a financing contingency, make sure the contract is clear regarding what happens to the earnest money if the buyer fails to notify you that they have received financing, i.e. the contingency is waived and EMD is hard.nnLesson here for buyers: leave the financing contingency as vague as possible regarding the return of the EMD!n#commercialrealestate...