In may 2006 my husband and I put down five hundred dollars earnest money for a house.We have not completed financing or any other process other than signing papers with real estate agent .The agent now says we can not have our money back that it has been spent but wont tell us what it was spent on.Are we entitled to the money back or not?
2006-10-03 05:01:13 · 8 answers · asked by apriljacobson2000 2 in Business & Finance ➔ Renting & Real Estate
You need to understand what an earnest deposit is.
An earnest deposit is nothing more than an amount of money tendered with the offer that you are willing to risk in the event that the terms stipulated in the offer to purchase are not met by you.
A buyer of real estate is not required to give money with an offer to purchase they are required to give consideration to make the contract enforceable. Consideration is not merely money it can be in the case of an offer the promise to purchase which the buyer is promising in the offer. That act which the buyer does not have to perform but wishes to perform is sufficient consideration when tendering an offer to purchase.
If tendering earnest money with the offer; then the disposition of the earnest money is to be spelled out in the offer to purchase by the agent. If not done by the agent such act could be deemed a lack of reasonable care and failure to act with reasonable care is ordinary negligence.
How to dispose of the earnest deposit should be written in the contract as to: if the sale is to close then how the earnest money will be applied or in the event of a temination or in the event that the seller does not accept the offer. I hope this basic opinion helps. If you feel you've been wronged by the agent you have recourses through your state's real estate commission. I will tell you however that depending on your needs that you seek legal counsel on this issue. Here are some links from our research department that might help you in any further research.
American Bar Association: http://www.abanet.org/about/
Real Estate Commissions Contact information all states: http://www.actwebservices.com/state-agencies.htm
Buena Suerte
2006-10-03 05:41:07 · answer #1 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
Usually, earnest money is meant to motivate the buyer to perform, meaning to take whatever steps are necessary for the completion of the sale. If there, in the purchase offer, you made any exceptions such as buying the property subject to your getting adequate financing, then there should be no problem getting the money back. Legally, the down payment, earnest money, must be held in a separate account called an "escrow" account. Its singular purpose is to guarantee that the holder of the funds can't and doesn't spend the money or co-mingle it with operational funds used in the business. If there was an expiration period on the offer to purchase which has expired, you may have forfeited your money. The agent has no legal right to spend your earnest money. It either has to be returned to you or given to the seller, which leads me to ask whether the agent was also the seller. Is this the case? Lastly, as with many other questions on Answers, I suggest you talk to an attorney even though it will cost you more money. You need a legal opinion, not a generalized comments from people who have little or no knowledge of the field or your situation.
2006-10-03 05:14:00 · answer #2 · answered by quietwalker 5 · 0⤊ 0⤋
Sounds like you got a crooked agent. In my experience if we put any money down on a house and signed papers, we were given a copy of those papers. It should say in there what the money will be used for and what happens if property falls through. DO be sure and check out the small print in the paperwork as well. If you find nothing stating the money can't be returned if property falls through then go back to that agent. If the agent STILL won't comply, go above the agent. If that still doesn't work there's an agency you can go to through your city's housing committee to file a report and complaint against the agency.
I don't believe they're allowed to keep your money at all. All money exchanged should be refunded. But it also depends on the agency you went with and what they're policies are. Go back over those documents or have a lawyer look at them and see if there's any discrepancies.
Good Luck
2006-10-03 05:08:18 · answer #3 · answered by BevD 4 · 0⤊ 0⤋
No earnest money is not returned that is why when you go househunting know exactly what you want and only give earnest money towards that house. What you are saying is with earnest money is "this is the house we want and we are ready to negotiate with the seller". If you dont' want to do that dont' give up the earnest money.
2006-10-03 05:10:40 · answer #4 · answered by Anjanette A 3 · 0⤊ 1⤋
I believe you should get your money back.
The only circumstance in which you would not get your money back is if you made an offer and backed out.
2006-10-03 05:04:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It depends on the circumstances.
See: http://www.ncrec.state.nc.us/pdf/publications/EarnestMoney.pdf#search=%22earnest%20money%20refunds%22
2006-10-03 05:08:39 · answer #6 · answered by drctrutops 3 · 0⤊ 0⤋
No, You do not get that back. Period
2006-10-03 05:04:25 · answer #7 · answered by myothernewname 6 · 0⤊ 1⤋
READ YOUR CONTRACT1
2006-10-03 05:08:33 · answer #8 · answered by bubu 4 · 0⤊ 0⤋