Seller cashed earnest money check BEFORE inspection was complete or the house even appraised! Is this legal?

Asked by Christine, Zelienople, PA Fri Mar 2, 2012

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3
Fran and Mark…, Agent, Yardley, PA
Fri Mar 2, 2012
Hi Christine

Are there Real Estate Brokers involved in this transaction? In PA and most other states Brokers are required to adhere to strict rules regarding deposits give to them. This includes depositing those funds into an escrow account within a timely manner, which may be before the inspection period has expired. In which case it is legal. If no Brokers are involved then read your agreement as to the handeling of deposit money. The moral is always use a professional wether it is a real estate professional or attorney.

Fran and Mark Redding
Prudential Fox & Roach, Realtors
1010 stonyhill Road
Yardley, PA 19067
215-321-3307 Direct
215-208-7169 Cell
http://www.franandmark.com
Web Reference:  http://www.franandmark.com
1 vote
Roland Vinya…, Agent, Sprakers, NY
Fri Mar 2, 2012
It might be legal (or might not, depending upon several things), but it is poor business to allow this to happen. That money should be in an escrow account, where neither party have control of it. If it was cashed in put into an escrow account, that is fine. If put into the seller's pocket, as you imply, that is not so fine. If you end up not being able to buy the property, you better hope the seller still has the money and has not spent it.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Fri Mar 2, 2012
For any necessary legal advice do consult with an attorney who specializes in real estate; unclear was the money deposited into an escrow account....
0 votes
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