Home Buying in Troy>Question Details

Scgscg, Home Buyer in Troy, NY

What is a reasonable time frame to expect the return of a purchase contract's earnest money, when the contract fails due to structural problems?

Asked by Scgscg, Troy, NY Sat Jun 23, 2012

The seller, seller attorney, and seller broker were all properly and timely notified as per the contract, but it is more than 3 weeks from that notice and I feel stonewalled on this. The best I have heard is that it takes time. The worst is " the check is being processed (that was first said more than 10 days ago). If the postal service has not gone out of business I would think " the check is in the mail" would be in my mailbox by now. Thank you.

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I would talk to your attorney, as they would be in the best position to answer your question. But I would think more than 3 weeks is not timely. If everyone is in agreement the deposit should be returned, it shouldn't take long at all. You should know that deposits are not allowed to be co-mingled with other funds, the listing has a fiduciary duty to hold the check in escrow so they could timely return the funds. Any violation or co-mingling of funds would be a serious ethically lapse on the part of the listing agent, and I would encourage you to file a claim with the NY Department of State and the Great Capital Association of Realtors.
0 votes Thank Flag Link Sun Jun 24, 2012
A reasonable time to except the return of the earnest money deposit is anywhere between 7 days to 14 days. This also depends on if all the proper releases are signed to allow the money to be released. If you are still in the timeframe at which the structural inspection can still cancel the contract. If you are dealing with a bank foreclosure of a retail sale. And final when the holding individual writes checks.

So if any of the above is not done correctly this will extend the amount of time to the return of the earnest money deposit.

Jerome P Newkirk
Licensed New York State Real Estate Broker
Revision Real Estate
35 Broad Street
Waterford, NY 12188
518-229-0366 cell Direct
518-438-2221 office
518-235-0055 Fax
0 votes Thank Flag Link Tue Aug 27, 2013
This was from June, 2012, So. Im sure that you have your money by now....
But, to anyone else, The sellers agent should have the earnest money back in a timely manor... It is important to get the money back in a timely manor and the attorney can certainly help as well.
0 votes Thank Flag Link Mon May 27, 2013
What is your attorney advising...
0 votes Thank Flag Link Sun Jun 24, 2012
depends on the area but generally here your Attorney would right a letter to receive the escrow money back. From that point it should not take more than a week or so.
0 votes Thank Flag Link Sun Jun 24, 2012
It should have taken no longer than 2 wks. Something smells fishy based upon the info you disclosed. If they side not to refund it to you; unfortunately, you will have to take them to small claims court (that's assuming the deposit is under 5k per usual). I'd have your attorney give formal notice that you want a cancellation & release. If seller side hasn't issued refund check w/ in 1 wk of that notice, immediately start small claims proceedings.
Best Regards,

Corey Landy
518 250 9339 albanynyrealestate@gmail.com
Web Reference: http://coreylandy.com
0 votes Thank Flag Link Sat Jun 23, 2012

Did this transaction not involve a title company that held the funds in earnest? If so, you should speak directly to the escrow officer at the title company. Do you not have a Realtor that represented you in the intended purchase? His/her job is to advise you in this matter. The invaluable services provided by a Realtor to a buyer in a purchase transaction extend far beyond the home selection process.

What is a reasonable time frame for the refund all depends on the parties involved in the transaction. Make your demands in writing, record all responses, provide a deadline, and consider getting your own attorney if your demands are not responded to in a satisfactory manner.
0 votes Thank Flag Link Sat Jun 23, 2012
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