My wife and I were in the process of purchasing a home. Our mortgage was suddenly denied before the deadline. The seller's realtor has been communicating with us because our realtor is out of town. He gave me the paper I needed to recieve my deposit back. Two weeks after returning the signed paper and not recieveing a check or response, I called the seller's realtor to ask if he recieved the fax. His exact words were, "Yeah, I got it, but the seller is (angry), because they wanted to move quickly. I don't think you'll be getting it back".
Is this legal??
2007-08-20 06:21:07 · 19 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I hope your offer was subject to you getting approved for the mortgage.
The seller probably has to approve the money being returned before whoever is holding it can return it.
If the seller clearly should sign it and yet they refuse they are subject to being sued by you. In Texas you can sue the seller for triple damages. It is in the Escrow fee paragraph #18 D in our contracts. I think that may be in addition to the escrow amount. There is no one that can force someone to do what they refuse to do except thru the court system.
Check with your agent and check your contract.
2007-08-20 06:42:25 · answer #1 · answered by glenn 7 · 1⤊ 0⤋
In any real estate deal there is going to be a good faith deposit. Some sellers ask for $500 and some ask for $1000. That money goes towards your closing cost. If for any reason, other than you or beyond your control, the deal doesn't go through than you can get that money back legally. You should be able to get your $500 back. Find a new realtor if he/she had you put a bid in on a house that was already sold.
2016-03-12 23:58:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The listing agent should not be discussing the transaction with you even though your agent is out of town. Call the Escrow Officer and ask her if you signed the right letter to have your earnest money deposit refunded back to you. This letter has to be signed by both Buyer and Seller. Have her read the Escrow Instructions and original contract and ask her if you are entitled to your deposit back. You should have a refund check coming to you.
Escrow is probably waiting for the seller to sign and return the letter back to them so Escrow can release the funds. Your Escrow Officer will tell you exactly what is happening if she knows which I'm sure she does. If you should have any more questions regarding your transaction contact the Escrow Officer or her assistant only. The sellers agent is not required by law to perform fiduciary duties to you, only to his seller.
2007-08-20 07:28:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Assuming there was a contingency in the purchase contract making the deal "subject to" you getting approval for a loan, you are due it back.
First, fax and send by registered letter to the owner, addressed to the agent a demand for payment. Make this a very business-like letter. I would word it something like this:
The purchase was nullified due to no fault of your own, and as the purchase contract was subject to approval of finance, due to the provisions of the contract you are immediately due the return of the security deposit. Failure to return the deposit within 72 hours from the date of this letter will require us to take immediate legal action.
Your attorney can advise you that any legal action will require you to pay all legal and collection fees accrued. Also your attorney should additioanlly advise you that any such legal action, as it involves a business contract with your property stated as part, may be an impediment to future sales of your property, since there will be a legal action concerning the property and cause title companies to refuse to issue title insurance until this issue is closed.
It is best if you repay the deposit as is your legal duty within 72 hours of the time and date of this letter.
Then as soon as the time is over, go to the courthouse and fill out the paperwork to start a small claims action.
Good luck
2007-08-20 09:34:35 · answer #4 · answered by rlloydevans 4 · 0⤊ 0⤋
I'm confused, your earnest money should have been held by your Realtor. Your Realtor should have put a contingency for financing in the contract. The only person you should be dealing with is your Realtor.
If your Realtor properly worded the contract, you shouldn't have a problem. Considering what is going on in the mortgage industry, you'd think they'd understand. Good luck.
2007-08-20 07:02:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
This is the type of thing a good faith deposit was meant for. The good faith deposit is meant to protect the seller. they took the home off the market while working with you, losing the potential sales that may have been gotten during that time. In return for them taking the house off the market you gave them earnest money to do a deal with you. the deal was lost because of you therefore you lose your earnest money.
The only way i can see you getting your money back is if you had a clause in your contract that it was dependent on you successfully getting a mortgage.
Either way, I would talk to your agent and ask them to show you the contract you signed or if you have a copy, look at the clauses agreed to for the earnest money.
Good luck!
2007-08-20 06:28:48 · answer #6 · answered by Patrick 5 · 2⤊ 0⤋
Good Faith Deposit Refund
2016-11-12 19:13:15 · answer #7 · answered by ? 4 · 0⤊ 0⤋
"JUST WONDERING" is absolutely right as long as you performed to the best of your ability. The contract is contingent upon you being approved for the mortgage.
The Seller probably won't hold your earnest money very long because they cannot legally go under contract with another Buyer as long as your money is held in escrow. The earnest money must be released to one party or the other. If not, the property is technically still under contract.
The laws vary state by state and it could be expensive for you to obtain an attorney. Call your real estate agent. If need be, call the broker of the firm your real estate agent works for. The brokers of the two firms can work it out between them. Trust me I've seen this happen more than once.
2007-08-20 06:37:49 · answer #8 · answered by Anonymous · 1⤊ 0⤋
What contingencies did you put in place on the deal?
A contingency is basically a "If/Then" statement in the buy/sell agreement. "If" my loan comes through, "Then" I'll buy the home. "If" my loan falls through, "Then" I get my ernest money back.
Your realtor should have helped you with this.
Now, there is a 3% of the sale price clause that is usually non-refundable. This is the consideration paid for the seller to not accept any other offers, even if they're offered more money from someone else.
2007-08-20 06:43:37 · answer #9 · answered by saberhilt 4 · 0⤊ 0⤋
It depends on what the agreement that you signed says. If it says you get it back if you can't get financing, and most do, then you should get it back. It's possible though that the realtor could find you financing - if it's in accord with what you signed, then you'd have to take it or lose your deposit.
The seller isn' supposed to have your deposit yet, if there was a realtor involved - the realtor should have it in escrow. If they continue to play games, it's possible that you'd have to sue them to get the money.
2007-08-20 06:35:12 · answer #10 · answered by Judy 7 · 2⤊ 0⤋