Home Buying in 02368>Question Details

Tb1965, Home Seller in 02368

Buyer missed the inspection notice deadline and asked to term the contract as the seller I want her earnest money? What are my rights?

Asked by Tb1965, 02368 Thu Mar 31, 2011

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Answers

6
Are you entitled to the deposit money? Mostly likely YES!!
Is it worth the hassle to retain the deposit? Most likely NO!!

Much of it is spelled out in the contract that was signed. You may have rights to the money. Most standard contracts will say default of the buyer is limited to deposits tendered. The problem arises that as an escrow agent (real estate brokerage), we can not release any funds to one party or another without consent of both parties.

Quite simply, if the buyer signs a release, handing over the funds it is nice and simple. If they don't, you are talking about hiring an attorney to get the deposit money if it can't be handled in small claims court. Minimally you are probably looking at $2500 in attorneys fees. If your talking about a minimal deposit, its probably not worth going after.... If its under $2000 you can probably go to small claims court.

Meanwhile, if you are retaining a deposit that is in question it may hold up selling your home. It may be best to move on and just get your home sold.

I am definitely not an attorney and in no way should you see this as legal advice, but this is how I have seen things play out before. If it is important to you to retain the deposit, seek the advice of a real estate attorney.
1 vote Thank Flag Link Fri Apr 1, 2011
If the deadline expired you probably have a right to keep the deposit but is it worth what an attorney will charge to talk to you and the bad feelings for what is probably a relatively small amount of money? You should discuss it with your agent but if you were my client I would advise you to give back the money and move on. If you do that make sure she signs a release so she can't come back later, when you are under agreement at a better price, and claim that she has a contract. Good luck.

Ellen G. Friedman, Keller Williams Realty, ellengfriedman@comcast.net or 617-448-1542
0 votes Thank Flag Link Thu Mar 31, 2011
You may be entitled to that money. Did she miss any other deadlines? Depending on the contract you may have numerous options. You need to discuss this with your Agent and an attorney.

Good luck.
0 votes Thank Flag Link Thu Mar 31, 2011
Hi Tb1965,

You very well may be entitled to that earnest deposit if the buyer walked away without good reason. Talk to your Real Estate Agent AND your attorney.

Good luck and let us know how you make out so we can all learn from this!

Judy Boyle
RE/MAX Signature Properties
0 votes Thank Flag Link Thu Mar 31, 2011
You should consult with your attorney or real estate professional. The accepted offer should cover this eventuality. You need to proceed with caution & follow the contract.

Hope that helps,
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Thu Mar 31, 2011
Depends on the contract. You need to speak with an attorney.
0 votes Thank Flag Link Thu Mar 31, 2011
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