The number one way you can protect your deposit during a real estate transaction is to abide by your contract deadlines.
Most real estate purchase contract deadlines consist of loan application, escrow deposit(s), inspections, appraisal, loan approval, condominium document review, and sometimes an association application deadline. It is important that you structure your contract to allow enough time for each of these events to occur within your deadline date.
You may cancel your contract and receive a refund of your deposit as long as you are canceling within the deadline based on the specific item mentioned for that deadline. For example: if you have a 10-day inspection. You may cancel on any day up to day 10 of the contract based on any property related condition you disapprove of. You may not cancel based on inspections or condition of the property from day 11 on. The same goes for an appraisal deadline or a loan approval deadline.
The absolute best tip I can give any buyer is to ensure they have a “clear to close” by their loan approval deadline. This way their escrow deposit is well protected.
Staying on top of these deadlines and coordinating all of these events is one of the top reasons to work with a real estate agent.
If you want somebody to “have your back” during your real estate purchase just give me a call or fill the form below!
By the way click here to see which neighborhoods have the highest elevations in Miami..
I am not a real estate attorney and this is not to be construed as legal advice. This is just information for the public based on what I have learned being in real estate for the last 18 years.