The most recent answer was from Nancy, but this question was asked by Mike on Oct 10th............

Mike, what happened? Did you get to keep the deposit? Did it close? Inquiring minds wanna know ;-)

It's hard to determine with facts presented. It depends on what is written in the contract. Be aware that Time is of the essence is for the Closing Date -- sounds like that has passed. Your attorney should be familiar with Florida Real Estate law (differs from other states). You or your attorney might want to contact the Broker of the Company that the agent works for directly. Good luck.

btw - I meant to ask you about the dual agency as this is illegal in Florida. . . did you mean transaction brokerage? The agent involved in this transaction owes you an explanation of the circumstances, but also is working with the buyer. I really don't like this situation, but you are in the midst of it, so call your agent and ask what is going on. If no answer, call the Broker for the office. All listings and transactions belong to the broker, NOT the agent - the legal liability is more with them than the agent, so don't hesitate to get the owner/broker involved in this situation.

If you don't like what you hear, immediately contact a real estate attorney. That should take care of it

Since your closing date is set for Monday the 15th, I would have your agent (or an attorney) draft a letter sent via return receipt requested stating that absent hearing from you by xxx date, you agree to forfeit your deposit of $30K and I will sell the house to someone else.

That usually gets the buyers immediate attention. $30K is a lot of money to lose, however - I'd want to still try and keep this deal together if possible. Have your agent see what they can find out and proceed with the advice of a real estate attorney.

This is the time to play hardball, let the buyer know that you'd love to sell if he just needs more time, but that you have every intention of keeping his deposit should he not close on the 15th.

Good luck, and let us know how it turns out for you!

One more thing:
The rule on all cash purchases is to be very careful.
Personally and professionally I would require a cash buyer to put down (this is in California) 3% to open escrow, 10-20% within ten days of opening escrow, and the balance due at closing.

The problem with only 5% down is that if the buyer flakes (which does happen), all you have is 5%. All cash transactions should set off warning bells. Particularly if the funds are international!

MIke
Please review your contracts with a real estate attorney if you have questions.

In my very humble opinion you are asking us to analyze a situation subject to a lot of shortcomings:
1. We don't have all the facts
2. We don't have the contracts
3. We are not licensed to practice law

My bigger concern is that you may receive some well-intentioned advice from a poster that may in fact do more harm than good.

One word of caution - it appears from your post that one agent is representing both buyer and seller. Be careful.
Keith

Hello Mike. Since your attorney says that the buyer will lose the deposit if he does not close escrow and we don't have any facts that would suggest that this might not be correct, the only question is when you'd be able to get the buyer's deposit. Unless the contract specified that the deposit be distributed to the seller in the event of the buyer's default, the fact that you may have a right to the deposit does not mean that you'll automatically receive it. Usually, the signatures of buyer and seller are required in order for the money to be released from escrow or whoever else is holding the money in a trust account.

The thing that troubles me is that the buyer did not have to show sufficient funds to close during the inspection period. In CA, buyers have to show that they have sufficient funds to close escrow and if they don't the seller can cancel the contract after first giving notice to perform. This way, the seller does not run the risk of wasting a lot of time with a buyer who does not have the money to close escrow and the seller will not incur out-of-pocket expenses for repairs that he has to make under the terms of the contract. Good luck to you.

Hello Mike,

Well, I recently had an issue very simular to this one. If the closing date passes, and no one hears from the buyer, then you must put a claim on the funds via your realtor. The realtor will have you sign a Realease Of Contract form which cancells the contract but also accounts for the division of the deposit. You should be entitled to the deposit but there are many steps to get it. Once you have signed, the realtor must have the buyer sign as well. If the buyer cannot be reached or disputes the division of the deposit then you will either have to go to arbitration or an attorney. I am assuming that the deposit is held in escrow at the title company (most typical for Florida). If it is, talk to them. They will have a procedure in place for these situations. From what you have said here it is pretty clear that you are entitled to the deposit but it does take time, and again, many steps to get it. Be patient and let your realtor know now that you want to persue the escrow deposit. Let your realtor have the paperwork ready to roll and have the title company know as well so that they can prepare either arbitration or the attorney so that you are not losing more time.

Hope this helps and good luck!
Linda J Sears