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Hard Earnest Money Deposit – What Happens If I Don’t Close Escrow?

Show Me The Money

Hard earnest money deposits, not to be confused with ‘hard money’, offer their fair share of risks. Some of the risks associated with all contingencies being removed and/or waived are worth it, others not.

While there’s many different scenarios that can lead to earnest money going hard in both good and bad ways, we’ll share one risky, yet possibly worth it, example.

 

hard earnest money deposits

 

Joe Cool Wants…

…a new party pad. In fact, Joe wants a luxury high-rise condo in Scottsdale during the development’s pre-construction phase. Good idea Joe. But there WILL BE risks.

The developers of Party Pad Lofts 480 (we joke) seek to protect themselves from buyers defaulting during the high-demand project’s long build-out schedule.

If you REALLY want that pad that will get you l@!d every single night AND gain potential massive equity you’ll need to agree to this contract that waives your right to backing out (after 72 hours).

This is one example is a metaphor for many scenarios. Are hard earnest money deposits horrible? No. Every scenario presents its own risks and rewards.

 

earnest money williams luxury homes

 

Fire Brand. Really Fire Representation

We like to think WLH has a pretty fire brand yet we LOVE knowing we provide world-class luxury real estate representation to our clients.

Whether you’re looking to protect yourself in a divorce sale or wish to close on a $150,000,000 Arizona Equestrian & Horse Ranch Property, WLH is here for you.

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