Buyer terminates contract 3 days before closing due to failure to get loan. Does seller have any recourse?

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Buyer terminates contract 3 days before closing due to failure to get loan. Does seller have any recourse?

They said they the loan was going through until 3
days before closing. Reason they said that they had
to be on same job for 2 years to use bonus .
Wouldn’t they have told them that at the beginning?
We had sold our furniture, had to find rent a home,
and had moved a lot of stuff out.

Asked on October 13, 2017 under Real Estate Law, Arkansas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

1) The seller is entitled to keep the earnest money or deposit.
2) If your costs and losses (costs, etc. you would not have incurred if the sale had gone through, but which yoiu instead incurred because it did not go through) due to their failure to go through with the sale exceed the amount of the deposit, you may be able to sue them for the surplus; check your contract of sale to see if it put an limits on what you could sue them for (if there are limits in the cotract, they are enforceable, otherwise, you could sue for the additional money).


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