Thouse, Home Buyer in 20705

My realtor refuses to give me back my deposit so I can make it payable to a different title company. Instead she insists that we do an even switch,

Asked by Thouse, 20705 Thu Mar 31, 2011

that would involve me taking more money out of the bank. She states that it would be against policy to give me back a check while it supposed to be held as a deposit for a current contract. Also another thing that was suprising she submitted a photocopied check of an old deposit check that we submitted on another house. What should I do?

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Answers

7
I would recommend arranging a meeting with the broker and agent to clarify the situation.

Charles Lancaster
Exit Right Realty
240 554-4093
charles@exitrightrealty.com
0 votes Thank Flag Link Thu Mar 31, 2011
Thouse,

There are a couple of things that need to be cleared up.

1. A check that is normally written to the brokerage is for the Earnest Money Deposit (EMD) and is given when you have a ratified contract. If you have a ratified contract, she is correct. That money is not used to pay a title company for a title search, which is done as an out of pocket expense. An appraisal and home inspection are the same way, they are paid for services rendered whether you purchase the house or not.

2. If the check was written to a title company, what was the purpose - EMD or title search. You will have to put money down for a deposit and pay for a title search with separate funds.

You signed your contract with a specific agent but in Maryland that contract is with the broker. I would first go to the broker and let them know what you issue is with the agent. The agent is to represent you as long as they are not being asked to violate the law or act unethically. Was the "old" check returned to you directly or by a brokers check or have you written them more than one check? As an investor, I have written a check for the EMD to my title company and had it used for several contracts - but only one at a time. Once the contract is ratified that money can no longer be used until released. Since the checks are deposited, photocopies are used.

I would go in a talk with the broker about your concerns and what you are trying to accomplish. They can straighten out any misunderstandings and work with you on getting the issues resolved. The local Board of Realtors, the real estate commission and real estate attorneys are also.

I agree with Laura and Elliot. One EMD for one ratified contract, until applied to purchase or released. I would go talk to the broker as soon as possible to make sure you may not be on contract for two properties.

(Broker, Broker-In-Charge, Managing Broker and Office Manager all refer to the person responsible for all of the agents in that office. The term varies based on the way the brokerage is organized.

Since we are real estate agents and not attorneys, do not take what has been said as legal advice and seek an attorneys advice, if you so desire.
0 votes Thank Flag Link Thu Mar 31, 2011
Thouse,

I am so sorry for your situation. It is actions such as these from Realtor's who are hanging onto their business by the nails in their hands. It is so frustrating for realtors that are on trulia that care about customers to hear this and know that your particular realtor will probably still be doing business like this for years to come. Why there isn't a resource/governing body in the industry that actually cleans house is sad. I know everyone will say there are resources for you to contact help, but lets be honest, should you have to hire an attorney, pay thousands of dollars to enforce a professional to be just that, professional.

Again, sorry for your position and I know you will get your funds back, but the head ache should be..
0 votes Thank Flag Link Thu Mar 31, 2011
Hi Thouse,

Your earnest money should not have been deposited unless you had a ratified contract. What is the disposition of that contract? Did it fall through? If so, did you receive a release signed by the Seller? Your deposit cannot be returned to you unless you have that paperwork. I would speak with the office manger or Broker for the office to get to the bottom of the issue. DO NOT enter into a new contract until this one is resolved unless you have the financial ability to buy BOTH houses. Clearly dispose of one contract before entering into another. When in doubt contact a real estate attorney.
0 votes Thank Flag Link Thu Mar 31, 2011
Thouse,

I would recommend that you contact your Realtor's office manager for more information. If you do not get the answers you are looking for then you may consider contacting your current title company or may even want to use the resources of the new title company you are trying to switch to, and more specifically, their affiliated title attorney, to give you the legal facts concerning your contract, deposits and escrows, and most importantly, your representation and rights as a party to your current contract. Good luck!
0 votes Thank Flag Link Thu Mar 31, 2011
I must assume that you have a signed contract to purchase and not just an offer floating out there waiting for signatures. Did you give an earnest money deposit to your agent who put it in an escrow account to hold for you or did the check go to a title company to hold? Has it been deposited? Escrow money has to be accounted for and the paper trail must be intact or there can be big trouble for the people holding it. Since we don't know the answers to all the questions I would say you need to find out more about the situation and possibly speak to your agents boss (aka their broker) to get to the bottom of this.
0 votes Thank Flag Link Thu Mar 31, 2011
Thouse,
Check the contract you signed for information on how earnest money is to be addressed. If you can't find the information there call your agents managing broker to request help to get your issue resolved.

All the best,

Gary Geer

http://www.GaryGeer.com
0 votes Thank Flag Link Thu Mar 31, 2011
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