How do we get our deposit back after backing out of a deal?

UPDATED: Oct 1, 2022

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How do we get our deposit back after backing out of a deal?

We entered a real estate contract to purchase a multifamily unit with no

inspection required. Just before 30 days the insurance company stated they need an inspection to insure us. We tried to get the inspector in the units and the seller delayed now putting us past 30 days once we got in. After the resort came back they declined is for insurance due to the issues. Now the bank will not do the loan. How can we back out now and get our $5000 deposit back?

Asked on July 12, 2018 under Real Estate Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You can't get your deposit back based on the facts your describe, unless there was some term or provision in the contact allowing you to terminate you sale and have your deposit returned in these specific circumstances. Otherwise, if the seller is ready, willing, and able to sell and *you* are the one who cannot or will not go through with the deal, the seller can keep your deposit. Even if the reason you cannot go through is that you could not secure insurance or a loan, that is still your responsibility, since it is your obligation to ensure you have those things. Based on what you write, they may retain your deposit.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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