If I enter into a contract and later decide I do not want to purchase the property, will I lose my earnest money?

Each contract is unique and it depends on the situation.  Before entering into a contract, think about what you need for the property to meet your needs.  As the Buyer, you want to provide as many “outs” as possible, such as:

The Buyer may declare this contract null and void and have the full amount of his earnest money returned to him if:

  1. Property is not zoned for his particular use, development, etc.
  2. Buyer finds the property’s soil to be unsuitable.
  3. Buyer cannot secure a loan in the amount $____ or more, amortized over ____ years, with interest not to exceed ___% per annum.
  4. (Anything else you can think of that is important to you as the Buyer, insert as a contingency.)

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