Posted by bob jackson on December 15, 2005 at 08:34:33:
i made a good faith deposit to a company called panamerican advisors in port arthur tx.they find investors for start-up companies. their contract said the deposit will be refunded upon finding an investor and i should wait at least 120 days for potential investor contacts. after 5 months i sent them an e-mail requesting my deposit be returned which they denied and said i would need to go to arbitration at their local bbb and deposit a $150 deposit that goes to the winner of the arbitration.am i entitled to me deposit?during the 5 month period i was never contacted by a potential investor or this company.the company said my requirements were to provide a deposit, provide a business plan and be prepared to meet with potential investors , all of which i completed.
Posted by Keith Brown on November 18, 2005 at 19:32:15:
I made an good faith deposit of 7,500, however the house did not appraise for the sale price of 380k. It came in at 330k. Am I entilted to my good faith deposit refund?
In addition I asked my lawyer he said he doesn’t know
It really depends on the contract. Most real estate contracts used by agents have a section that deals with this. In the R/E contract used by agents in VA says, the seller can reduce the sales price to appraised value or You can agree to pay above appraisal or there is no deal and earnest money will be returned.
The low appraisal also effect the terms of financing stated in the contract which would be an out also.
With out reading the contract no one can answer your question.
My advise is READ THE CONTRACT, if you still have questions consult an attorney in your state