Escrow dispute with realtor when buying a house.?

Question

Me and my fiance signed with a realtor to buy a house and have deposited our funds into his escrow account. How we are unable to get a bank loan because my fianace is not 21 years of age and cannot own property unless she gets her minorty waived which is not an option b/c it would drop her from her mom's federal health insurance plan.

We where never told that Jennifer could not own property, we cannot secure any type of loan with any bank for any amount, regardless of making a down payment or not, b/c my credit alone is not good enough to get a loan with only my signature, and I cannot find someone with good credit to co-sign with me. We are simply unapprovable at this point in time or until 4 months passes when Jen is 21.

My question is this, the realtor has informed us that the $500 that we gave to him which he deposited into escrow can only be given back to us if the seller wishes to, which I cannot just see someone giving back $500 of free money to them back to us.

What are my options? Do a stop payment on the check and risk being sued. Say that the contract is void b/c we where never informed that Jen could not own property. Say that the contract is void b/c Jen's signature is all over the buyer's contract which in itself makes the contract void b/c she at the time of signing the contract she was a minor.

Answer 1

Your Realtor is caught between a rock and a hard place. When money goes into an escrow account, real estate laws says he or she may not disperse it unless it is approved by all parties. So tell him in writing that he may not give the money to anyone. That will freeze it in his account and creats an escrow dispute. State laws also have very tight procedures as to how escrow disputes are handled. This becomes a hot potato for him. It will buy you time until everything is sorted out. Do not stop payment because it shows bad faith in your part if this ever goes to court which I doubt it would.

If your state prohibit anyone under 21 from owning real estate, that may make your sales contract invalid. You need to ckeck with an attorney in your state. If that is in fact true, you should be able to get your money back.

Secondly, in most sales contracts, there is a stipulation that in the event the buyers cannot get financing, the deal is dead. You need to see if the box for the "Financing Contingency" is checked. If that in fact is the case, then it is an open and shut case.

Now 4 months is a short time and the real estate market is not so good. If the seller really wants to sell and you two still wants to buy, why no delay the closing till then? There is no need to get into a brawl over 500 bucks.

Your broker may have some exposure. He or she should have check to make sure whoever signed on the contract is of legal age. He could get sued by the seller.

Answer 2

Your realtor sounds like a real jerk. Why didn't your realtor insist that you get pre-approved (which incidentally should be a free service) for your loan FIRST? That way you would have known your fiancee was not able to own property until she turned 21. Where I live (in California) the first thing that is normally done when buying a house is to get pre-approved. Most realtors insist on it - it shows that you are serious about buying a house and that you have the ability to be approved for a loan as well as the amount of that loan. That way, you know what price range to look at when shopping for a home. Realtors don't want to waste their time with a prospective buyer that is neither serious nor able to qualify for a loan. In most cases, you should be able to get your deposit back, as long as you have a legitimate reason for backing out on the deal, which I would say you certainly do in this case. Sounds like your realtor is giving you the shaft and just doesn't want to refund the money. I would definitely push the issue - maybe talk to the realtor's supervisor or manager if you can't get anywhere with the realtor. Sorry, that's about the best advice I can give you. Best of luck to you.

Answer 3

Whoa... whoa... whoa...

Why does she have to be on title? Do you need her income to qualify for the loan? If not, you can purchase the home solely in your name, then go to the title company the day after it closes and "quit claim" her onto the title. Whether or not she is on title doesn't matter to mortgage lenders. It's WHO is applying for the loan. If you have your hearts set on this place I wouldn't take no for an answer.

You need to uncover what the issue with the loan is. That's what this is all about. Your real estate agent is not at fault here. It is the mortgage company. The reason there is a deposit is this; when the seller accepts your offer, they do so with the idea that you will be able to secure financing. If you do not, they could have potentially missed out on a buyer who WAS qualified.

Answer 4

your Realtor make 2 mistakes- one, he don't know law in your state and second he sign the contract with people who were not pre-approved for the loan. if he will ask you for this before you sign the contract- all of you will not be in the mess ,he created.
check your contract, but i am pretty sure you will get your money back, but sometimes is taking forever to get all the party to agree on this. that is what happen if you start working with the people who you trust ,they are professional and later you are in situation that you can't find whose fold it is.

Answer 5

Don't stop payment. If the realtor didnot inform you and your wife of all the rules and regulations, sue the realtor for the money. The realtor knows he was wrong, if you threaten to sue, most likely he will find a way to get you the money.

Answer 6

I would contact a lawyer for some free advice. There are a ton of them out there that will give you advice without actually making a case out of it.

Answer 7

Ok. But, if you can't cook, i'll do the cooking and you get the dishes. Too easy, right?lol Edit: Ok, it's on:)

Answer 8

You should be discussing this with your lawyer.