Home Buying in San Clemente>Question Details

Gcooper999, Home Buyer in San Clemente, CA

Closed on our new condo, few weeks later our real-estate call and said we owed $5,000, the earnest money was lost by local agent. Do we owe $5.k?

Asked by Gcooper999, San Clemente, CA Thu Jan 31, 2013

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Escrow would need your earnest money deposit in order to get Hoa docs. Call escrow first and confirm they had your deposit. Ask for a copy of it too. Keep for your records
1 vote Thank Flag Link Thu Jan 31, 2013
Ck to see if the first ck cleared the bank. Also talk to escrow to see how they were able to close or get necessary HOA docs with money since the only funds they have are your deposit to pay for them. Does not sound right to me. I have never had anything like that happen on over 15 years!!
1 vote Thank Flag Link Thu Jan 31, 2013
call the escrow company and talk to them, also check with your bank to see if your check has cleared your bank. Escrow would not close with funds still outstanding. If it did, it's escrows problem. Talk to a real estate attorney.
Good Luck
1 vote Thank Flag Link Thu Jan 31, 2013
I have heard of the HOA sending in a bill to escrow after escrow closes. But a 5,000 Ernest money deposit. I would check to see if your check was every cashed. If it was not then I would think you would owe that amount
Still check with a real estate attorney for legal advise. And get the closing statement from escrow to show all monies received and disbursed
That's a big mistake to slip through the cracks on escrow parts, the sellers agents part and on your agents part
Good luck the money maybe due if you intended to pay it contractually and never did.
0 votes Thank Flag Link Sun Jun 30, 2013
The big question for those of us that are mere mortals, ie. customers, is what are the names of the individuals that you dealt with...Let the rest of us deal with these people by voting with our wallets!
There is no excuse to pay the amounts of monies involved, and then make the that kind of mistake!!
Do the rest of us a favor and keep them from hitting someone else with this type of "surprise". As for the "right thing" that another realtor mentioned? The person making this inexcusable mistake should've at the very least split the cost with you. I know my realtor would've demanded it be done that way!
0 votes Thank Flag Link Sat Jun 29, 2013
I agree with Michael
How can escrow close and record without all the monies in escrow to be paid out. This doesn't make sense that the escrow company can close record and disburse money they don't have.
I would contact a real estate attorney and see what thy can advise you. We are not an attorney who can really advise you on this and do not know your situation and what happened in your transaction it's all speculation at this point

Ingrid Ski Realtor
0 votes Thank Flag Link Sun Feb 3, 2013
It started with whomever you gave the Initial Deposit check to in the beginning because that should have gone to escrow within 3 days of acceptance of the offer and been cashed so that the funds would be held in trust. Even the listing agent should have checked to make sure that actually happened. I am not sure the lender is to blame for this one...you blame them for things like changing the interest rate or points on you mid-transaction, or not having the approval in time to close by the contract date.

Hey, honest mistake. You are doing the right thing. Time to go enjoy your new condo!
0 votes Thank Flag Link Thu Jan 31, 2013
Real-estate company did not mean to pay my earnest money....just made a mistake. What makes me upset is the organization that put all the paperwork together before it went to closing company, this company was extremely difficult to work with, I would have thought they would have caught this mistake before closing.

I will sent my agent a check for the $5.k because he really worked hard to get this deal done.

I'm just MAD at the Loan Officer/Redmond Team at Supreme Lending for not checking everything.....I guess they are not held accountable for the numbers....

thanks Gary
0 votes Thank Flag Link Thu Jan 31, 2013
Gary, I don't belive the Real Estate Company made a "mistake" in paying your Earnest Money Deposit. These days Brokerages are struggling and for them to write a check for $5,000 some hard conversations and thought had to go into it. I expect someone at the Brokerage lost your check and wanted to make sure they did not interfere with your Purchase of this property so they wrote the check to protect YOU and your deal. It is unusual and admirable of the Brokerage to do this for you. The check you are writing needs to go to the Brokerage not your Agent since agents cannot receive money directly from any Buyer or Seller. The Broker can receive it and ensure it is properly repaid to whomever fronted the money on your behalf. The good news is you closed on your home and the Brokerage helped immensely with that....
Flag Sun Feb 3, 2013
It's pretty simple and can be summed up in one word - Karma. This is a character test for you. If you are satisfied that the paper trail clearly shows that the $5k is money you agreed to pay, but their was a accounting error along the way, you do the right thing and take care of it.

The real estate company needs to pay more attention to their accounts!
0 votes Thank Flag Link Thu Jan 31, 2013
I can't imagine there being an escrow company out there that fails to account for the buyers earnest money being on deposit. If they've got a problem with their accounting, why isn't the escrow company contacting you trying to figure out the mishap. I hate to suggest that there could be shady characters in this profession, but as we all know there are people out there that do unscrupulous things. The only thing that makes sense in this scenario is that this realtor could be trying to trick you into parting with $5000 of your cash. Who did he/she ask you to reimburse, themselves or the escrow company?
0 votes Thank Flag Link Thu Jan 31, 2013
The broker that paid it on your behalf should be reimbursed. Remember to place a stop payment on the original check too.
0 votes Thank Flag Link Thu Jan 31, 2013
Looks like they really wanted to help you. I would pay it with a very big THANK YOU!!!
0 votes Thank Flag Link Thu Jan 31, 2013
I checked today and the check never cashed, real-estate company paid it for me (by accident?). Property closed 2 weeks ago. Is the loan company responsible or me for $5k, Realtor was good and I don't want them to lose out. Any ideas?
0 votes Thank Flag Link Thu Jan 31, 2013
Was your check cashed - and - by whom?
0 votes Thank Flag Link Thu Jan 31, 2013
And let me guess, make the check out to the that agent, right?

I had situation many years ago when a loan officer claimed to have paid for an appraisal. He needed to get money from me. He wanted to meet me at an ATM. When I refused, he threatened to camp out in front of my house until I paid him.

I called his supervisor and the supervisor told me that he was fired 2 weeks prior and didn't work for him anymore.

Be wary of this situation.

On the other hand, I have seen escrows close in which the back property taxes were not paid. The title company skipped out with the check. So, it is possible for escrow companies to screw up.

As Ed and Lori pointed out, was the original check ever cashed? Proceed with caution and do the right thing.

CA DRE 01775528
0 votes Thank Flag Link Thu Jan 31, 2013
No...but you do need to have that real estate agent explain what he's talking about in front of both Brokers. Earnest money would have been received by Escrow a long time ago. And they don't lose your money. Sounds like the agent needs that hole in his pants pocket sewn.
0 votes Thank Flag Link Thu Jan 31, 2013
Hello Gcooper999,

I agree with Doug E. this is strange since all monies should have been accounted for at the close of escrow. The earnest money deposit is the first of your money to go to escrow (within 3 days after acceptance) and you or your agent should have received an receipt for the funds. Ask escrow to send you a copy of the receipt or it may be in your closing package.

Look a bit further and ask questions, this smells a bit.

Brian Wilson, Realtor
0 votes Thank Flag Link Thu Jan 31, 2013
Escrow would not have closed with out it. 1) check your contract for escrow receipt. 2) check your settlement statement, it will show your deposit on there, 3) call your escrow officer and confirm. Doesn't sound right to me.
0 votes Thank Flag Link Thu Jan 31, 2013
That doesn't sound right. Escrow would not have closed if all your funds had not been in place. I would call escrow and ask for a copy of the earnest money deposit receipt. That should settle things. If you have any questions, please feel free to call me direct at 949-973-6062.
0 votes Thank Flag Link Thu Jan 31, 2013
I'm not sure I fully understand the question or the situation. Did you agent concede $5000 in commission in order to get the deal done? If so, was there an upfront agreement that you would then pay them this money after closing? If not, then no...you do not have to pay this money. Again, I may not fully have grasped the question.
0 votes Thank Flag Link Thu Jan 31, 2013
That sounds very strange and not accurate. This should have been finalized before the close of escrow. I would recommend having three way discussion with the broker and the escrow company. Feel free to call me if you have any other questions. 949-373-8601
0 votes Thank Flag Link Thu Jan 31, 2013
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