What happens when a title co.in TX illegally witholds earnest money?

Question

I requested the earnest money deposit be sent to me when the buyer defaulted on the real estate contract. The title company never responded to my request until I filed a complain t with the TX Dept. of Ins.--They claim now that I released the funds and furnished a forged release form with the wrong cotract date and buyer. I read somewhere that I should now be paid 3 times the orgiinal earnest money amount, but now I can't find that rule----Feds have been notified-so far, I've heard nothing. :(
I expect to be paid what's legally due me. Anyone....??

Answer 1

I'm not an attorney, but a Texas Realtor. If the title company was given a forged document, then the person(s) who did that committed a crime. They'll have more to pay than three times the EM.
The title company is not to make the decision as to who the money goes to - they just follow the instructions on the paperwork given them. If there were Realtors involved, contact the Texas Real Estate Commission - they handle complaints from the public against Realtors.
BTW - the three times rule has to do with either the buyer or seller unreasonably holding out on releasing the money. Find out if the buyer had it done (the forging) or if he even knew about it.

Answer 2

Depending on the amount $5,000 or more, file a claim in small claims court. You can pay an attorney to prepare the paperwork for your lawsuit. Don't take that from anyone. Also, try contacting the Department of Real Estate, I don't know if they can help you but it's worth a try. Contact a local television station that might want to air your story. The publicity alone may get the company to rethink your refund.