Posted by Kim-OH on November 28, 2004 at 12:28:03:
Hi Larry,
I just went through the hassle of attmepting to get my EMD back on a contract that I cancelled after the inspection came back very unacceptible. It took nearly a month to get it back and I did learn that the seller had to sign off on the cancellation of the contract.
If this property is listed by an reputable agency you need to address this issue with the broker. The listing agent should also be looking for his/her client as they cannot sell without knowing where their client is. If the broker of the office cannot help you you may need to take your complaint to the State Board of Realtors in your state.
I’m afraid this may not be quick or easy to resolve but if you perservere I believe that you will get your EMD back. The next time you put in an offer you may want to have a title company lined up and have them hold the EMD along with any documents that would release you from the contract if you find the inspections not to your liking. When agents are involved the EMD is put into the escrow account of the listing agent’s brokerage so it’s not necessairly in their best interest to hurry to return it to the buyer.
I have been attempting to have a $2,000.00 earnest deposit returned to me on a property I was attempting to purchase but the sellers agent / office manager will not release the funds saying the seller must sign a consent of release form or I would need a court order. I went to the district court and filed a small claims. The seller has moved out of the house cannot be contacted, so I hired a private investigator to locate his whereabouts. He is not to be found, the court can’t help and according to the sellers office, by Michigan law they cannot release my deposit. I’ve searched Michigan law and cannot find any such stipulation. I need help to have my deposit returned.
Re: Earnest deposit refund - Posted by Natalie Smith
Posted by Natalie Smith on November 30, 2004 at 15:09:17:
Larry,
I am not an attorney; I am a real estate broker. Most real estate contracts have a section dealing with the disposition of earnest money. What does yours say? Why didn’t you complete the purchase?
If it’s clear that you should receive your deposit back, the broker should refund it you with written notice to the seller at their last known address. Sometimes, brokers won’t do this for fear of a lawsuit. If this is the case, contact the real estate licensing authority for your state and file a complaint against the agent and the broker.
Now, if it’s NOT clear that the money should be refunded to you, then they will wait for that court order which may never come.