Earnest Money Disputes Attorney
Last updated on April 7, 2025
When purchasing real estate, earnest money deposits represent a buyer’s good faith commitment to the transaction. Unfortunately, disputes over these funds can arise, potentially jeopardizing deals and creating financial hardship for the parties involved.
At The Womack Law Firm in Houston, attorney Mark Womack has been resolving earnest money disputes for over 30 years. He provides strategic guidance to both buyers and sellers throughout Texas, helping them navigate these complex situations while protecting their financial interests and legal rights.
Understanding Earnest Money In Real Estate Transactions
Earnest money serves as a financial commitment from a buyer to a seller when entering into a real estate contract. Typically held in escrow by a title company or broker, these funds demonstrate the buyer’s serious intention to complete the purchase. If the transaction proceeds to closing, the earnest money is typically applied to the down payment or closing costs.
However, when a transaction fails to close, determining who is entitled to these funds can become contentious. This is when having an experienced earnest money lawyer becomes essential to protecting your interests.
Common Reasons For Earnest Money Disputes
These disputes often stem from specific issues that arise during the transaction process. Understanding these common causes can help you avoid potential problems or address them appropriately if they occur.
● Breach of contract by either party
● Failure to obtain financing despite good faith efforts
● Title issues discovered during the inspection period
● Property condition problems uncovered during inspections
● Disagreements over contract contingencies
● Missed deadlines specified in the purchase agreement
● Misunderstandings about contract terms or requirements
Each situation requires a thorough analysis of contract language, applicable real estate laws and the specific actions taken by all parties throughout the transaction process.
Steps To Recover Earnest Money
If you are involved in an earnest money recovery situation, there are several approaches to resolving the dispute effectively while protecting your legal interests.
● Careful review of the contract terms governing earnest money
● Direct negotiation between parties to reach a compromise
● Formal mediation with a neutral third party
● Binding arbitration if specified in your contract
● Litigation when other methods fail to produce a resolution
As an experienced attorney, Mr. Womack can evaluate the strength of your position and recommend the most effective strategy for your specific circumstances.
Contact An Experienced Houston Earnest Money Disputes Attorney
Contact The Womack Law Firm online or call 281-407-7155. The firm is committed to achieving the optimal resolution for your earnest money dispute while protecting your financial interests.