Home Buying in 44133>Question Details

KatBosko, Home Buyer in 44133

I signed a release for a home purchase in 2009. Seller sold the home then signed my release and wants my earnest money now.

Asked by KatBosko, 44133 Tue Sep 21, 2010

Easements were found on the property that seller did not disclose
Title company originally did not want to give title insurance
I signed release to give $1k em to seller because I was afraid of a lawsuit
Seller never executed release
Seller sold home in April 2010
Seller is now signing my release and demanding payment from broker because it was w/i one year

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Tari Torch Sweeney’s answer
Well, bottom line is that an attorney will tell you your next move. If no mutual release is signed,the earnest money should still be in the trust account. It will sit there. Where is your realtor? And your realtor's manager? And, I repeat, you may lose the money to an attorney,but you stand to lose that without one,too. Pls understand that,as Realtors, we CANNOT give legal advice. Every Realtor who has responded has,essentially, told you this. I, for one, am sorry this has happened to you. But, now you need legal advice. Also, i don’t know how this escaped your Realtor/Broker. If your Realtor was also the seller's realtor, you DO need your own attorney, because possibility is that this realtor was representing seller, not you.
0 votes Thank Flag Link Tue Sep 21, 2010
I was the buyer in this scenario. Yes, I should consult a RE attorney however that may cost me more than giving up the $1k earnest money.

Seller never released me from the contract. I then had to renew my lease for another year. Seller ends up selling the home to someone else and now the seller's realtor has her sign my original release from last year and is demanding release of my earnest money.
0 votes Thank Flag Link Tue Sep 21, 2010
It doesn't matter what his Realtor says....hate to tell you that, but...if they have a Realtor, that Realtor should be saying what everyone else is saying here: "talk to a RE attorney." We, as Realtors, do not practice law, and do not profess to practice law. ANY advice, other than recommending an attorney, could get the Realtor in trouble. Call an attorney. May cost money, but it's going to be a lot less than if he has to fight it in court because he didn't want to spend the money to consult an attorney. If he has a Realtor, shouldn't that Realtor have made sure that Mutual Release was signed? Without signatures on a Mutual Release, the money stays in the Earnest Money non-interest-bearing Trust Account...until such time as this is resolved. So, if he has a Realtor, he should find out where the EM is/was, and if it was released....and let the buyer tell it all to his attorney.
0 votes Thank Flag Link Tue Sep 21, 2010
What does your Realtor say? Or was this a FSBO?
0 votes Thank Flag Link Tue Sep 21, 2010
Do you need the name to a few Real Estate Attorney's?

Please email or call me for a few Attorney's in our area.

Your Trusted Advocate,

Kelli Glover
Keller Williams
Direct: 216-272-3877
Fax: 440-808-9344
Email: kelliglover@kw.com

Real Estate Professional
Your Trusted Advocate; Expert Customer Service, Proven Results!
0 votes Thank Flag Link Tue Sep 21, 2010
I agree. RE atty is best bet. My guess is seller will lose. But attorney is best for legal opnion. Dollar will be well-spent.
0 votes Thank Flag Link Tue Sep 21, 2010
I have to agree with everyone else that contacting an attorney is in your best interest. It is unfortunate that you were put in this difficult situatjion. Hopefully a real estate attorney can resolve this for you. Good Luck!
0 votes Thank Flag Link Tue Sep 21, 2010
The release should have been signed by the seller and the earnest money should have gone back to you if indeed there were easements on the property that where not disclosed to you the buyer. Technically you cannot resell a property without a mutual release. A year later the seller now signing a release is a little late in the game.

My advise is to definately discuss this with a real estate attorney.

Hope this helps
Barbara Kachenko
0 votes Thank Flag Link Tue Sep 21, 2010
This is definately one those times where an attorney is needed!
0 votes Thank Flag Link Tue Sep 21, 2010
You should definitely contact an attorney to assist you in resolving this issue.

Rick Tannenbaum, Realtor
Keller Williams Realty Greater Cleveland
0 votes Thank Flag Link Tue Sep 21, 2010
You need to contact an attorney.
0 votes Thank Flag Link Tue Sep 21, 2010
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