If you’re buying a condo or loft in DTLA, you’ll have to put down an earnest money deposit – and in many cases, if you back out of the transaction for legitimate reasons, you’ll get it right back.
But there are a few cases in which you won’t get your earnest money deposit back, including:
- When you agree to it
- When you skip contingencies in your contract
- When you back out of the deal for a different reason
When You Can Lose Your Earnest Money Deposit on a Loft or Condo in DTLA
When You Agree to a Nonrefundable Deposit
Your DTLA Realtor® will advise you not to agree to make a nonrefundable earnest money deposit. There’s just too much that could go wrong – and no matter how tempted you are, or how much you want the condo or loft, it’s important that you protect yourself (and your money). Don’t sign an agreement that says your deposit is nonrefundable!
When You Skip Contingencies in Your Contract
Your Realtor will build certain contingencies into your purchase contract. Those contingencies can be life-savers. Let’s say something happens, like you can’t secure financing in time or you have to sell your current condo before you can buy a new one. When you have contingencies in your contract that allow for these things, you’ll be fine – but if you don’t, and you have to back out of the deal, you could lose your earnest money deposit.
When You Back Out of the Deal for a Different Reason
When you back out of the deal for a reason not outlined or allowable in your contract, you’ll most likely lose your deposit. (There’s no contingency for getting cold feet.)
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale