We have a home for sale, it was under contract. The buyers agent was the buyers daughter. They signed the contract stating they would get a residental loan and put $1,000 in escrow. The residental loan was approved and we were going to close, until the title company found out that they were going to rent out the home and told them that they could not close with a residental loan. They tried to get the correct type of loan to no avail. We gave her a 3 week extension, she agreed to pay all daily interest during that time. Finally they were denied for the right type of loan and now they want their escrow deposit back and do not want to pay the daily interest, and I am out 3 weeks time and have to have the escrow tied up because they wont release it. She even had the nerve to say that she would split it with us if we gave her the pool table in our house!!!! Please read my other ?s for more details. What would you do in this situation?
2006-10-23 10:45:55 · 4 answers · asked by susieq 2 in Business & Finance ➔ Renting & Real Estate
I'm not sure if escrow money is to be returned to the potential buyer if a deal falls through or not.
The fact of the matter is, a deal falling through is all part of the game. It happens and you just have to move on to the next buyer. You can't do anything to them for backing out. They could have gotten all the loans they needed and then changed their minds and you'd just have to move on.
Like I said, though, I'm not sure what the obligation is for the $1000. I thought that money stayed with the sellers, no matter what. Check with your agent. That may also depend on the wording of the contract.
2006-10-23 10:52:13 · answer #1 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
I suggest you have them sign a cancellation of purchase agreement within the next 24 hours. As for $1,000 to be held in escrow until your dispute can be resolved. I would put your home back on the market. Now, hire an attorney to sue the buyers agent and the buyers to keep the $1,000. Because they did not reveal to you, let alone the mortgage company what their intentions were for the use of the home after closing, I'd say that is in line with fraud.
2006-10-23 18:26:26 · answer #2 · answered by Alterfemego 7 · 0⤊ 0⤋
First, your realtor should be able to handle this for you, and know the laws in your area. Where I am from the scenario could go like this if the contract said the purchase was dependent upon financing then they are entitled to the money back, there is no recourse for you to keep the money. However, if the contract was not dependent on financing then you should be able to keep the money, and essentially make them purchase the home (which I dont think you would want to do pain in the butt), but you could do this. Also, if she said that she would pay interest was it in writing? If so then you could get the money, if not in writing then it is not enforceable. This does happen all the time, and you may have to chalk it up as a loss.
2006-10-23 18:31:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Give all this information to whoever regulates the real estate salepeople in your state. In Texas this would be TREC (Texas Real Estate Commission) With buyer's agents like this, who are willing to commit fraud on a real estate transaction, I have no hesitation in helping them out of this industry.
Loan fraud is a serious problem in my industry and as I track the history on forclosures, I know that fraud leads to alot of them.
2006-10-24 00:34:11 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋