Cold Feet Clause: Navigating Buyer & Seller Backouts and Earnest Money Disputes

Matthew opens with a true story: a buyer backs out three days before closing citing a vague inspection concern, the seller demands forfeiture of earnest money, and the escrow officer is stuck deciding who gets the funds. In this practical, 10-minute monologue Matthew breaks that situation into three actionable lessons every buyer, seller, and agent can use: (1) the legal anatomy of earnest money and common contract contingencies, (2) simple mediation and escrow-handling steps that keep funds safe while the dispute is resolved, and (3) preventive contract language and checklists to reduce the chance of last-minute walkaways. Listeners leave with clear scripts for agents, a short checklist buyers can use before deposit, and a step-by-step flow escrow officers can follow to protect parties and close cleanly.