Wondering, Home Seller in Jefferson City, TN

Hey my house has had 3 contract signed and at the end every time they back out i have been out of my pocket around 2000. and i just want to know who

Asked by Wondering, Jefferson City, TN Mon Sep 20, 2010

gets the earnest money eash comtract has had a 1000.00 earnest money i m always ask to sign for release of money so who gets the money Its not me or the buyer so who is that how realtors make money

Help the community by answering this question:

Answers

5
Why are you signing the releases? As Kathy says, the money's going back to the buyers who've failed to follow through on the contract.

No, that's not how Realtors make money. The earnest money could end up with you or it could end up with the would-be buyer, or it could be split. That's it. No way can the Realtor get his/her hands on it. The Realtor makes money from the commission you've agreed to pay.

I'm not permitted--ethically--to interfere in your relationship with your Realtor. So, umm, I can't say what I might like to say. But if you've had 3 contracts fall through, you don't know where the money's gone, and you can't get answers from your current agent, you might consider the possibility that when your listing agreement expires that you at least consider other agents.

Hope that helps.
3 votes Thank Flag Link Mon Sep 20, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
If you sign a release the buyer gets the money back. The realtor does not get paid until your property is actually closed on.
Web Reference: http://jenniferratcliff.com
1 vote Thank Flag Link Sun Apr 10, 2011
If you aren't getting the answers you seek then find out exactly to whom the earnest money was written to. Either Agents office or Title Co. (escrow account). Once you know which company is actually receiving and holding aka escrowing the money for you, then ask that company who is getting the refunded earnest (should be the buyer.) Also, are accepting offers contigent upon financing etc? Maybe these buyers aren't backing out but are discovering the house is over priced an may not appraise or depending on your property type maybe a conventional mortgage isn't available.
I used to have many buyers call me after signing offers nly to tell them that the property wouldn't appraise or that there were liens, etc against the property that needed correcting prior to closing. Many buyers don't want to deal with the added headaches. Three offers accepted by you seems wierd that all three would-be buyers walked away...
1 vote Thank Flag Link Wed Mar 30, 2011
Wondering,

When you sign a release of monies from escrow, escrow refunds the earnest money deposit back to the buyer. No monies go into the agents pocket unless the deal closes.

As an agent, I prefer to not have my buyer walk from a contract to purchase. We as agents do NOT get paid unless the transaction completely closes - funds and records.

Also, not sure why you're out so much money unless you had repairs done - and in actuality would have to be done for most buyer's so it's not really a loss.

Is your property a Short Sale? If so, buyer's do walk throughout the process. Many get tired of waiting. As hard as we try to convince them to wait it out, it's realistically their decision. Some agent's have specifics regarding "release of deposit" back to the buyer. Some attach Addendum's whereas the buyer agree's to relinquish their deposits if they walk. Contractually, that is difficult to hold them to.

My suggestion would be to discuss this issue with your agent and ask them for their advice. There maybe a way to hold the buyer liable in your state if they back out of their contract.
1 vote Thank Flag Link Mon Sep 20, 2010
Check when you sign the release of money, it should say there. Must of the times goes back to the buyer but ask your realtor he/she should be able to tell for sure.
0 votes Thank Flag Link Mon Sep 20, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer