do we have to pay money back that someone put down on a house but decided not to buy it, it was off of the market for a month

the man paid $500 and we took it off of the market, so it wasn't being shown or on the market for at least a month if not longer. now he wants the $500 back. do we have to pay it?
(0) | asked by: Lloyd Walker | share | 1 week ago | Report
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answer by Bill Lumpp    |   Visit My Website   |   Contact Me
Lloyd, I hope your agent discussed the due diligence process to you but it sounds like they did not or you do not have an agent. The due diligence process allows for the buyer to walk away for any or no reason and the only thing you keep is the Due Diligence fee. If the $500 was Earnest Money then it will need to be returned to the buyer as long as they walked away before 5 PM on the Due Diligence day. The 5 PM Due Diligence day/time is very important and clear. After 5 PM on the due diligence day then the Earnest Money is at risk for the buyer. Both parties need to agree in regards to the returning of the Earnest money or one party will need to bring a court case. But the 5 PM time before/after is clear in the contract.
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