Re: REALTOR will not give earnest money back??? - Posted by JohnBoy
Posted by JohnBoy on May 02, 1999 at 19:57:37:
I don’t have anything to add to what the other posts said about getting your deposit back. My question is, why did you even bother going through with your inspections and sending a letter to the realtor stating that all your contingencies have been meet BEFORE you even had a copy of the signed contract from the seller?
Technically your 7 day inspection clause isn’t even effective until the date that the seller signs the contract. Your releasing your contingency without even having a contract on the property.
I do have another question on this? If you signed off that all your contingencies have been meet, then why do you have a problem with showing proof of funds at this point?
For future reference here are a few things you might want to consider to prevent this kind of a problem.
Only agree to put up the earnest deposit upon the sellers acceptance of your offer. This means you don’t hand over any deposits until after the seller accepts the offer and signs the contract. The realtor then hands you a copy of the contract signed off by the seller at which time you then put up the earnest deposit.
Consider having a clause in your contract or an addendum if your using a realtors contract, that the earnest deposit is to be held by a 3rd party. You can try to get it where your attorney will hold the earnest deposit or otherwise have it set up that escrow will open and all monies shall be held by the title company until closing. This keeps the realtor from controlling your money.
Also have strict instructions on how the earnest deposit is to be distributed in the event the sale falls through. Then the title company will be the one to distribute those funds and it keeps the realtor away from controlling the money.
When submitting an offer, always put a time frame in which the seller has to accept your offer or the contract becomes null & void if not accepted by that date and time. I usually give 24 hours unless it’s on a weekend, then I’ll extend it until that following Monday or Tuesday at the latest. Within 24 - 72 hours you either have a deal or you don’t. This prevents the seller or the realtor from holding things up and puts a signed contract in your hands within hours instead of days or weeks and then resulting in a deal that falls through on you.