Good faith deposit (contingency, agreement, inspection, contract)

[Swede in CA]

Situation: the buyer put a good faith deposit. An Inspection was done, but 7 days before closing the buyer lost his job. Will be a good faith deposit returned to the buyer?

[Cloudwalker]

Was there a finance contingency in the contract? Has it been waived yet?

[2bindenver]

Whatever the answer is, it is in your contract.

[DMenscha]

Recently the CA Assn. of Realtors updated the purchase agreement form. Previously language in the form said "The loan contingency shall remain in effect until the loan is funded". That phrase is missing from the new form and we now have to write it in manually.

I would guess that the buyer would no longer qualify for the loan and would be entitled to his EM back minus any costs that he authorized.