Home Buying in 01821>Question Details

Raquelh, Home Buyer in 01821

my realtor refuse to return my down payment for a house that the deal never went tru...

Asked by Raquelh, 01821 Wed Mar 24, 2010

i was into buying a house 6 months ago, i was pre qualify and everything was going good, my realtor ask us for 15 thousand dollars for her to keep in a scrow account and show the bank we were very real about buying the house, the money was suppose to be for the down payment, after 4 months the house went to auction and our realtor bought the house on her own expecting to sell us the house latter for a extra profit, we never asked her to do so, now our bank decide not to give us the loan anymore, and we can't buy the house, but our realtor refuse to return our money, what should i do? take her to court? please let me know asap i really need help

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9
Territory.com’s answer
Wow! This is an unbelievable story and I am so sorry to hear it. Contact an attorney immediately. If you need a recommendation we can give you one just contact us at help@territory.com
You should also contact the head broker at the company this realtor works for and file a complaint and you also consider filing a complaint to the MLS and Massachusetts real estate board.
Web Reference: http://territory.com
0 votes Thank Flag Link Tue May 29, 2012
Was this person a REALTOR(R) or simply a real estate agent? If the salesperson is a REALTOR(R), meaning a member of the National Association of REALTORS, then s/he is required to adhere to a higher level of ethical behavior as put forth in the NAR Code of Ethics which prescribes a strong system of ethics complaint procedures for members of the public and other REALTOR members. Contact the local REALTOR association in addition to an attorney.
0 votes Thank Flag Link Mon Sep 16, 2013
Consult an attorney. Bring the attorney all contracts, receipts and all correspondence.
Web Reference: http://www.thehousewiz.com
0 votes Thank Flag Link Tue May 4, 2010
Home buyer:

Contact a litigation attorney. Please contact me via email and I will send you recommendations. I am local to the Billerica area.
0 votes Thank Flag Link Wed Mar 31, 2010
I've always found it a good idea that in business, when I have a question I can't answer, I consult legal counsel. But I'm not giving you advice, only what I do.
0 votes Thank Flag Link Thu Mar 25, 2010
Call a real estate attorney as soon as possible.

It doesn't sound to me as though you are working with a Realtor in a larger or well organized company with a Broker who is overseeing things, or this situation wouldn't have occurred...You can certainly speak to the Broker, but i have a feeling that isn't going to get you anywhere, and quite possibly, the agent is the Broker.

Do you have a signed contract? Are issues such as the deposit money and mortgage contingency dates spelled out? Did you just give her $15,000 without having anything in wiriting?

You might also want to contact the MA Real Estate Commission.

Good luck.........
0 votes Thank Flag Link Wed Mar 24, 2010
Definitely talk to the agent's broker.

If the situation is as you described, then your agent did all sorts of things wrong. At least in future:

There's a difference between an earnest money deposit and a down payment. An earnest money deposit is often 1%-3% of the price of the home, and accompanies the contract. Only when the contract is agreed to do you then produce the remainder of the money for the down payment. That's problem one.

Did you ever actually make an offer? That is, did your agent ever submit one? (Sounds like she might not have.) You'd have to have signed it, so if you didn't sign an offer, one was never presented. That's problem two.

Your agent bought the house expecting to sell it at a profit to you. That's a violation of her fiduciary duty to you. That's problem three.

You say your agent refuses to return your money. Was the money ever actually put into escrow? If so, at least we'd know the money was still there. It's really not up to the agent to make the decision to return the money, though. That process, spelled out in your offer, generally requires not only your request but the agreement of the seller. Your agent has no say in the matter. That's problem four.

If I were a suspicious person, I'd wonder if the agent took your money, never put it into an escrow account, then used your money to buy the house.

Talk to the agent's broker. Explain the situation. Remind the broker that not only is the agent's license in jeopardy, but so is his. Point out, too, that the errors and omissions insurance that the agent should have doesn't protect against fraud. If you don't immediately get all your money back (immediately being within 24 hours), go to a lawyer and proceed from there.

Good luck.
0 votes Thank Flag Link Wed Mar 24, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Call the agents broker first thing explain the situation, the broker should have all the details of the escrow account and give you a solid answer on when to expect the return of your funds. Just call the Realtor's main office and ask to speak with the managing broker. If you do not get the answers you seek you should definitley contact an attorney to deal with the matter.

Tori Browning
0 votes Thank Flag Link Wed Mar 24, 2010
Raquelh,
I think you really need to seek the advice of an attorney.
In the meantime, have you talked to your agent's broker?
Something seems very, very wrong here.
0 votes Thank Flag Link Wed Mar 24, 2010
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