Buying NH Real Estate: Earnest money deposit refund
You are in the midst of a purchase transaction. You found the home of your dreams. You submitted a $5000 earnest money deposit with your contract upon signing, and you are now ready to get the rest of the deal done.
Next: You hire your home inspector.
Upon completion of the home inspection, there are a few items that are uncovered that cause you to have second thoughts about this dream home. There is evidence of termite damage around the perimeter, the leach field needs to be replaced in your septic system, and there are 2 supporting columns in the basement that are rusting and require attention. Your Realtor works with you to prepare a strategic response to the seller, requesting the seller’s participation in remedying these items. The seller agrees to take care of the termite issue via a separate inspection and treatment plan, as well as fixing the columns in the basement. But they simply cannot afford to also replace the leach field. Your question now becomes…do we proceed with the purchase, or do we withdraw from the contract. The bigger question…IF we withdraw…do we receive our earnest money deposit back?
The answer to that is YES. As long as you are within your inspection contingency window(a date set forth in your purchase and sales contract), you will work with your Realtor to prepare a request to withdraw from the contract, giving reason as to why, along with supporting documentation from the inspection report. You will also submit a request for release of escrow at the same time. A full refund of your escrow deposit should be granted.
If you have additional questions regarding the purchase transaction, please call Lauren DuPaul at 603.305.7006.
