Does a home buyer owe the earnest money deposit if the contract is already terminated?

For example: An offer to purchase is made on standard form 2-T. An additional earnest money deposit is scheduled to be paid at 5:00pm the day after the due diligence period ends.

Buyer terminates the contract the day after the due diligence period is over, but before the 5:00pm Earnest Money Deadline.

Question: Is the buyer obligated to pay the earnest money deposit to the seller?

Answer: Yes

Per the current standard form 2-T, the buyer must terminate the contract before the end of the due diligence period, or they will be obligated to pay the additional earnest money deposit.

In this example, the buyer terminated after the end of the due diligence period, so they were obligated to pay the additional earnest money deposit. You have to terminate the offer before the due diligence deadline to avoid being obligated to pay the earnest money deposit.

The only other ways that form 2-T allows a refund of an earnest money deposit after the due diligence period, is If the Property is not in substantially the same or better condition at Closing, or if there is a breach of contract by the seller.

Keep in mind - terms for the Standard Offer To Purchase Form 2-T change over time, so this example could change if the terms of the standard contract are updated. Always check with a licensed real estate agent for current guidance.