An Ohio seller receives multiple offers and accepts one. At closing, the buyer's financing falls through at the last minute. Under Ohio practice, what happens to the earnest money deposit?
Correct Answer
D) The disposition of the earnest money is determined by the terms of the purchase agreement
The disposition of earnest money when a transaction fails depends on the terms of the purchase agreement. Most Ohio purchase agreements include provisions addressing what happens to the earnest money if financing falls through, including whether it is returned to the buyer or forfeited to the seller.
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Related Topics & Key Terms
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Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
More Oh Financing Closing Questions
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In Ohio, after the deed is recorded, the county recorder assigns the document a recording reference number. This number is important because it:
In Ohio, the conveyance fee is paid at the time of:
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- → In Ohio, the conveyance fee statement (DTE 100 form) must be filed with the county auditor when transferring real property. This form requires disclosure of:
- → In Ohio, the real estate closing process is commonly referred to as:
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Previous Question
In Ohio, when a married person sells real property, the non-selling spouse must typically:
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In Ohio, certain counties utilize the Auditor's Transfer Acknowledgment process. When submitting a deed for recording, the conveyance fee statement (DTE form) must accurately state the consideration. If the stated consideration is found to be fraudulently understated to reduce the conveyance fee, the seller may face: