Home Buying in Atlanta>Question Details

Harked, Home Buyer in Atlanta, GA

My agreement states the buyer can not enter into another agreement during the due diligence period but they did. Shouldn't I get the Earnest

Asked by Harked, Atlanta, GA Wed Jul 18, 2012

money? I have a fully executed agreement but my broker had not entered the sale into the system.

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Answers

7
Your agent and their broker need to offer their competent, fiduciary guidance on this matter.

You have an agent - make 'em work for this. Coming here for free advice should get you absolutely nowhere, because we know nothing about your specific contract, the timely processing of your contract or the written details therein.
1 vote Thank Flag Link Wed Jul 18, 2012
Hank is absolutely correct- The agent you have by your side should be on top of this...
0 votes Thank Flag Link Sat Aug 4, 2012
That's why you have that agent that you selected - ask them. As Adam noted, they can do whatever they want during the due dilgence period as this is essentially an option period. After that - your agent is the one to consult with - what are they telling you?
Web Reference: http://hankmillerteam.com
0 votes Thank Flag Link Sat Jul 21, 2012
Harked,

After carefully reviewing your fully executed contract, speak with your agent and then if you still feel the need the broker. Neither is there to provide legal advice.
0 votes Thank Flag Link Thu Jul 19, 2012
Dear Harked,

You are asking a question that has legal consequences in a very specific situation. Real estate agents are not permitted to dispense legal advise, so you should not look for any in a forum such as this. That said, the first thing you should do is talk to your agent and then his/her broker if you do not get a satisfactory answer. If you believe you can get satisfaction by taking legal action, then hire an attorney experienced in real estate litigation, and prepare wait a long time to get a resolution.

Otherwise, keep your home on the market, and review your agent's marketing strategy. If you are still not satisfied, ask your agent to release you from the listing agreement and hire another agent.

Best,

Dave Herren
Best Atlanta Properties
404-424-4945
0 votes Thank Flag Link Thu Jul 19, 2012
Hi Harked. First, you should speak with a real estate attorney regarding the legal implications of the situation as real estate agents are not attorneys. Here are my thoughts on the situation (but this is not legal advice). In general, the seller keeps the earnest money as a form of liquidated damages. This usually occurs when a buyer backs out after the due diligence period and the seller recovers liquidated damages in the form of earnest money for having been deprived a sale and the ability to market the home while it was under contract, etc. However, even though the buyer went under contract with another home while they were under contract with you, my inclination is to believe that the earnest money would go back to the buyer. Why? Because the buyer can back out of the agreement during the due diligence period, it will be difficult to show that you were harmed because the buyer could have backed out regardless of whether he was under contract with another property or not. Of course, some of this answer depends on the type of contract you used (was it a GAR?) With regards to your broker not entering the contract into the system (FMLS?), a binding agreement is a binding agreement as long as assent by both parties can be shown on the written document.
0 votes Thank Flag Link Wed Jul 18, 2012
You can contact the broker of the buyers agents brokerage and file a dispute/request on the earnest money, that it be disbursed to you. They contractually binded the contract agreeing to the terms, stating that they would not enter into another contract but did anyway, cancelling your contract. If he dates on the other contract run during the same period, you should be entitled to the EM, or at least half. Talk to your agent and have them contact the other agents managing broker.
0 votes Thank Flag Link Wed Jul 18, 2012
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