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  • Writer: James D. Lynch
    James D. Lynch
  • Aug 4, 2021

Earnest money is a deposit paid by a home buyer when entering into a home purchase agreement. Earnest money is typically around 1% or 2% of the home purchase price. By depositing this earnest money, the buyer is showing a good faith intent to purchase the property. The earnest money usually goes to an escrow agent (a neutral third party), who holds the money until the transaction closes.


Who gets the earnest money? If the transaction closes, the earnest money is credited towards the home purchase (i.e. it will be applied towards the closing costs and/or the down payment). If the transaction does not close, the general rule is that the seller keeps the earnest money if the buyer terminates the transaction, and the earnest money is returned to the buyer if the seller terminates the transaction. However, the terms of the contract may create certain exceptions to this general rule. For example, most contracts say the earnest money is refunded to the buyer if the buyer exercises the right to terminate during the option period.


Does the buyer get the earnest money back if the loan falls through? The contract should address this as well. If the contract is subject to the buyer obtaining financing, the earnest money will be refunded to the buyer in the event the buyer’s loan is not approved. However, if the contract is NOT subject to the buyer obtaining financing, the buyer forfeits the earnest money if the loan is not approved. This illustrates the importance of thoroughly reading a contract before signing it.



  • Writer: James D. Lynch
    James D. Lynch
  • Nov 1, 2020

Eminent domain refers to the power of federal and state governments to take private property for public use by paying the landowner just compensation. In other words, it is a "forced sale" of private property to the government. For example, the government might seize someone’s home for the purpose of constructing a new road through the property. The government's exercise of its eminent domain power is known as "condemnation."


In order to have a valid taking of private land, 1) The taking must be for a public purpose, and 2) just compensation must be paid. The phrase "public purpose" has been interpreted broadly. Almost anything that has something to do with benefitting the public will qualify. If the government takes private property to resell to a private developer for purpose of economic development, that qualifies as a public purpose. "Just compensation" is the fair market value of the land taken at the time of the taking.


In most cases, it is not possible to refuse an eminent domain action. The power of eminent domain is a legal right of the government. Eminent domain is allowed in the United States Constitution (Article 5) as well as state constitutions and statutes. However, it may be possible to challenge a government's eminent domain action if there is no public purpose or just compensation.



  • Writer: James D. Lynch
    James D. Lynch
  • May 24, 2020

A quiet title action is a lawsuit filed to establish a party’s ownership of property. The objective is to "quiet" any challenges or claims to ownership of the property.


Quiet title actions are prevalent in cases where there is a disagreement on the title. A party might file a quiet title action in situations where:

● there are multiple claims to the property ● there are boundary disputes ● surveying errors had occurred ● an adverse possessor claims title ● there may be problems associated with a property conveyed by quitclaim deed ● there was a fraudulent conveyance of a property (such as by forged deed or coercion)

If a party prevails in a quiet title action, no further challenges to title can be brought. A quiet title judgment will be granted, which can be recorded and thus provide legal "good title."



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©2024 by Law Office of James D. Lynch, PLLC. The information contained in this website is for informational purposes and is not to be considered legal advice.  Any correspondence between you and the Law Office of James D. Lynch is not intended to create an attorney-client relationship.  Please do not send confidential information to us until after an attorney-client relationship has been established by an engagement letter signed by the proposed client and our attorney.

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