Posted by edwin on March 10, 2008 at 07:22:59:
You’ll probably have to sue the dumbass broker for it.
lost earnest money! - Posted by mike
Posted by mike on March 04, 2008 at 14:10:09:
I signed a p&s with owners of a property which was facing forclosure.the bank who holds 1st mortgage ok’d a short sale agreement.my earnest money was given to the listing broker of the property.the bank gave me ten days to close. owners signed a p&s. it was a cash deal.owners said they couldn’t find a place to live but refused to sign an exstension of p&s.time ran out.sellers also refuse to sign to release my funds.house is going to auction soon.still no money.
Re: lost earnest money! - Posted by Kim
Posted by Kim on March 16, 2008 at 16:23:02:
Before you hire an attorney, you might try making a formal complaint to the state licensing department. Check your state’s website or call the licensing department to see if there are any special forms required to file the complaint. Be prepared to document your case.
Re: lost earnest money! - Posted by Natalie-VA
Posted by Natalie-VA on March 10, 2008 at 09:19:48:
Mike,
In my area, there are 3 ways for the broker to disburse earnest money if a transaction doesn’t close:
- The parties agree in writing who the money goes to
- The broker releases the money based on the contract terms
- A court decides
I’ve never seen a broker do #2, no matter how clear the contract is. They just don’t want to get sued. If things work this way in your area, you’re going to end up going to court unless the seller comes to their senses. It might not make sense to even take it to small claims court unless they will reimburse your court costs.
–Natalie