I was not approved for a loan. Can I make seller return my deposit?
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I was not approved for a loan. Can I make seller return my deposit?
Owner selling home. My offer was accepted and I gave her $1000 deposit. I was not able to obtain financing. She cashed my check and does not want to return deposit. What recourse do I have?
Asked on June 29, 2009 under Real Estate Law, Louisiana
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
I am not admitted in Louisiana but all states require that a contract for the sale of real estate must be in writing. Lenders would also need to see something in writing in order to start the loan process. Do you have a contract? The contract should say what would happen if you could not get a loan. Return of deposit is usually standard in real estate contracts. From the way you phrased your question it would appear that you were doing this without help from an attorney, who would help you get the deposit back. You may have to sue the woman in small claims court. Without a contract you may have difficulty but bring with you the cancelled check, your loan application and denial, and any other form of proof you may have (witnesses, etc). Good luck.
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