We have a mutually signed contract between ourselves and the buyers of our property. The contract states that they will deposit into escrow $2000 with in 5 days of mutually excepted offer. It has been 2 weeks and the escow/title company tells me that it has never been deposited. They have waived the right to a home inspection and with no ernest money what can I do if the back out. Lender states they are approved and that as far as they know all is proceeding. I am a little worried because my home is now off the market for last 2 weeks and there could have been potential buyers and my buyers now have no money wrapped up in this deal. What can I do if they back out? Who is responsible for this. The buyers or their real estate agent. She won't return calls or contact us
2006-11-19 04:08:57 · 7 answers · asked by Amanda M 1 in Business & Finance ➔ Renting & Real Estate
From my experience (I am not a real estate agent or attorney, so this is not legal advice)...
If you don't have a deposit, you don't have a deal. If you have other offers that have a security deposit with them, those offers should beat out the first offer since the first offer never gave you the deposit. I'd keep marketing the property and get a backup ASAP.
2006-11-19 04:40:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Without the earnest money/deposit, you are free to re-list your property. If the current buyer backs out of the deal, the earnest money would revert to the seller, i.e. you. Basically, as "payment" for missing potential buyers etc. But since they have not deposited the money, they have not fulfilled their end of the contract. The buyer's agent isn't going to return your phone calls because technically they are only allowed to "deal" with your agent. Have your agent contact theirs and see if the buyer deposited the money with their agent (some brokerages have trust accounts in order to make less paperwork on commissions). If you don't have an agent, contact their agent's broker and explain the situation to them. It sounds like there has been some sort of miscommunication somewhere, and that it can be worked out rather quickly. At least, that's what I'm hoping. Good luck!
2006-11-19 04:58:00 · answer #2 · answered by Sithein 3 · 0⤊ 0⤋
You are right to be concerned. That's the whole reason for an earnest money deposit. It's so that, if you're buyer for some reason cannot close on their mortgage, you're house is off the market and you could have missed out on a buyer who WAS qualified to finance your home, so the deposit would be yours.
The contract clearly states that the buyer must provide the EMD within 5 days of the offer being accepted, and they haven't. It is a breach of the sales contract, and therefore null and void.
2006-11-19 05:08:40 · answer #3 · answered by Justin 3 · 0⤊ 0⤋
Real estate laws very from one state to another, however I can tell you from experience, the lenders are the slow ones. I would let your broker know, and tell them to put it BACK on the market until this is resolved. Check over your contacts very carefully, and they should indicate resolvement somehow. It probably is using a moderater (Third Party) and this takes alot of time. Simply, Sounds like the buyers backed out.
2006-11-19 04:19:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Get it back on the market. If they come through, which looks doubtful, fine. Not sure where you live, but why didn't the check get deposited in the listing agents escrow account immediately?
2006-11-19 06:59:55 · answer #5 · answered by Papa John 6 · 0⤊ 0⤋
Your real estate agent is SORRY, put the house back on the market with another agent!!!
2006-11-19 04:13:57 · answer #6 · answered by tom_nearhood 3 · 0⤊ 0⤋
put it back on market your losing money they may not have the money in first place thats not fair to you
2006-11-19 05:57:22 · answer #7 · answered by pattibcacl 6 · 0⤊ 0⤋