Posted by Riko Valentine on February 13, 2006 at 15:28:40:
My question is: What are the time limits if any for the broker, agent and/or seller to release funds?
Thank you.
Getting back Earnest Money - Posted by Chris OBlock
Posted by Chris OBlock on May 06, 2005 at 12:47:09:
We were going to buy a house and put $1000 Earnest money down with the title company. 2 weeks before closing we come to find out that the house had a class action suit on the roof that we believe the owner kept from us. We passed on the house and are trying to get are earnest money back. The seller is holding out on signing the papers keeping us from getting our money back. He also put the house back on the market. Are there any laws governing when he has to sign off so we get our money back and can he legally put the house back on the market without the cancellation in effect. I live in Nevada. Your expertise would be greatly appreciated. Thanks for your time.
Re: Getting back Earnest Money - Posted by eric
Posted by eric on May 06, 2005 at 12:57:59:
What does the contract say? Had you already released contingencies when you backed out? If you had already released contingencies, then you are likely out of luck. If before removal, then you are likely entitled to its return. If entitled, sue in small claims court.
Re: Getting back Earnest Money - Posted by Chris OBlock
Posted by Chris OBlock on May 06, 2005 at 13:46:26:
Thanks for the fast reply. No contingencies were released. The sale was contingent upon the inspections & appraisal. The appraisor found out about the class action lawsuit. The class action lawsuit was not disclosed in the contract so we backed out. We are clearly in the right and are entitled to the earnest money back. What I was wondering is if he can hold on signing the cancellation papers and in turn put the house back on the market when the house is still ours because no cancellation paperwork has been filed. Is there any time limit that the seller has to sign the cancellation paperwork or if he holds out then is small claims court one of the only resolutions.
Re: Getting back Earnest Money - Posted by eric
Posted by eric on May 06, 2005 at 15:31:54:
If you unilaterally cancel the agreement, he can enter into another agreement with someone else in reliance on that cancellation, depending on how your cancellation is drafted. The deposit is a separate issue.
I don’t know NV law. In CA, there is a Civil Code that provides fo a $1000 fine if either party wronfully refuses to sign for the distribution of a deposit. Small claims is not your only choice, but for only $1000, it would not make sense to do anything else. There is no way to force him to sign the release absent a court order to do so.
Re: Getting back Earnest Money - Posted by riko valentine
Posted by riko valentine on February 13, 2006 at 15:26:26:
I live in Washington State and I was in the process of selling my house. An offer was received and earnest money in the amount of $5,000 was given to the broker. The house was set to close 01/30/06. The buyer ended up in jail and the house did not close. As of yet, I have not received the earnest money. The real estate agent is not returning my calls or my agents calls. The seller is not returning calls and as of yet the earnest money has not been received.
Riko Valentine
Re: Getting back Earnest Money - Posted by dealmaker
Posted by dealmaker on May 06, 2005 at 21:26:41:
Or you could do as my attorney once advised me in a not too dissimilar situation. Take your contract to the county recorder of deeds (or wherever you do that stuff in NV), and record it. He won’t be able to sell the house with your “cloud” on the title.
Sneaky but effective.
dealmaker