Real Estate

Purchasing Pre-Construction House - Is Earnest Money (Deposit) Back Contingency Common Practice To Be Included

  • Last Updated:
  • Nov 1st, 2020 3:58 pm
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Aug 19, 2012
41 posts
72 upvotes
Halifax

Purchasing Pre-Construction House - Is Earnest Money (Deposit) Back Contingency Common Practice To Be Included

I am in the process of preparing for the final review of the contract for purchasing a pre-construction detached house. I want to include the Earnest Money (Deposit) Back Contingency clause in the contract (clause means that the contract can be broken with no penalty or loss of earnest money to the buyer or seller - if the buyer cannot secure the loan at the time of closure - meaning mortgage denied due to an unforeseen event, such as job loss etc.), but the builder sees this as a deal breaker.

Looking or advice on Earnest Money (Deposit) Back Contingency implementation - is this a common practice and usually accepted by builders when buying a pre-construction house?

Thank you in advance.
Last edited by Tiefling on Nov 1st, 2020 8:06 pm, edited 1 time in total.
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1 reply
Deal Addict
Jan 15, 2017
3613 posts
2970 upvotes
No, it is not a common practice and would not be accepted by any builder here in ON. Don't know what the builder's will accept in NS.

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