The standard real estate contract has three major contingencies; loan, appraisal and inspection. A cash buyer will not have a loan contingency but will likely have an appraisal and inspection contingency, Unless these contingencies are removed in writing, they will remain in place. A buyer may cancel and get their deposit back if contingencies are not removed. Some states contracts have these removed automatically by the dates set within in them. Others have specific language that must be applied for your contingency to be fully removed.
Your contract is the first thing to review. For the purpose of this article, we will look at inspection contingencies. Should the buyer decide that they don't want the house after the inspections get done, they can walk. They don't have to buy the house even if you agree to do all the repairs. If they feel that the house has too many issues to overcome or even if they feel it is tainted they can walk. If they decide to walk your options as the home seller are to sign a release of their earnest money deposit, or dispute it. Before you dispute anything with a buyer, first have a discussion with your agent and next with your real estate attorney. If you don't have a real estate attorney, have your agent point you in the right direction as they will have a handful of them at their fingertips.
If the deadlines passed and agreed upon work was done, submit paperwork to the buyer to release the earnest money to you from whoever is holding it. That will either cause the buyers to reconsider or cause you to go to the next level of the small claims court. Optionally, you may decide that you will just release their earnest money back to them so you can get back to fully marketing your home to someone else who is more rational in the purchase of a home.
What you can not do, is make someone buy a home they do not want.Your contract likely indicates the method of resolving earnest money disputes, whether through interpleading, arbitration or court and the best way to understand how it will work for you, is to speak with your real estate attorney.
Keeping the earnest money deposit may open a bigger can of worms then it is worth. And that should be what you weigh your decision on. Unfortunately, many of these real estate in Charlotte NC contract disputes have more energy placed on the emotional aspect of the sale rather than the language of the contract. That being said, it may be easier for both parties to sign off on the release of the earnest money deposit and move on it opposite directions. The market is still seeing modest appreciation and it would be to the homeowners gain to get a new buyer for their property.
