I put $1,000 in escrow toward the purchase of a house contingent upon being approved for financing within the 30 days. Unfortunately I was not approved for the loan.
Now my real estate agent is trying to get me to sign the escrow over to the sellers because they "took their house off of the market" when they accepted the contract and therefore they are owed the escrow.
I did not ask for them to take their house off the market and did not know that was possible that quick anyway.
I have until tomorrow night to return the signed disbursement papers otherwise the real estate agent drops the escrow check off with the courts.
Am I really liable for someone else's decision to take their house off the market? What are the ramifications if I do not turn in the signed disbursement and the agent drops the check off with the courts?
2007-11-27 14:11:15 · 4 answers · asked by Jim E 1 in Business & Finance ➔ Renting & Real Estate
This is a scam. The sellers are not owed any money. They should have kept the house on the market listed "In Escrow -- Sale Pending". They can even accept backup offers. I wish I had all the escrow money from buyers who could not complete the sale for whatever reason. Escrow is a pending state. There is no sale, and no money should EVER change hands, until escrow is CLOSED.
2007-11-27 14:17:07 · answer #1 · answered by Kathryn D 3 · 0⤊ 0⤋
Your real estate agent is a toad. (And I say that with sadness because I also am a real estate agent) If your offer to purchase contained an appropriate contingency clause covering you in the event of failure to get loan approval, you should have the escrow/earnest money returned to YOU. If the real estate agent persists, contact his/her managing broker and have a heart to heart talk with the managing broker. Do not sign anything, and make that call to the broker first thing tomorrow morning.
2007-11-27 14:26:46 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
You only lose your money if you were able to receive financing and then backed out. You need to look at a copy of your sales contract and make sure it stated your offer was contingent upon financing. You need to have your lender give you a turn down letter and go to the managing broker to get your money back. It sounds like your realtor is not being ethical.
2007-11-27 15:51:55 · answer #3 · answered by yourmtgbanker 5 · 0⤊ 0⤋
Look at the Agreement of Sale papers that you signed. The disposition of the $1000.00 will be clearly stated.
2007-11-27 14:21:13 · answer #4 · answered by !!! 7 · 0⤊ 0⤋