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Posted by
Joyce Tate

What do you do when an listing agent refuses to have her seller and broker to sign a Release of Earnest Money returned?

My buyer lost his job two weeks before his closing and, since then the house did sell.
However, this agent told me that if my buyer lost his job that her seller could keep his earnest money.
I called her broker and she failed to get her agent to get this form signed.
I thought about going to remediation but, the buyer works out of town and would not be able to
participate in the process. Please help me get this issue res loved .
Thank you,
Joyce

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REALTORS®
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What do you do when an listing agent refuses to have her seller and broker to sign a Release of Earnest Money returned?

By Joyce Tate   
Posted on Nov 10, 2017 in Topic: Realtor Only
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My buyer lost his job two weeks before his closing and, since then the house did sell.
However, this agent told me that if my buyer lost his job that her seller could keep his earnest money.
I called her broker and she failed to get her agent to get this form signed.
I thought about going to remediation but, the buyer works out of town and would not be able to
participate in the process. Please help me get this issue res loved .
Thank you,
Joyce
Status: Open
Viewed: 328
Asked by: REALTORS®
Posted: 2 weeks ago
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Platinum
Karen Sherrill
about 2 weeks ago
All parties are bound by the contract. If your buyer lost their job outside of the parameters of the Third Party Financing, then I believe the seller would indeed keep the earnest money. Regardless, the Release of Earnest Money needs to be signed so the earnest money can be released...to the buyer or the seller. Reach out to the title company and see if they can mediate and get a response for you. You should also get your broker involved at this point. If all else fails, connect with legal at TAR for their input.


about 2 weeks ago
Bronze
Victoria Lewis
about 2 weeks ago
The home shouldn’t be able to close while there is earnest money being disputed. First you need to find out who is entitled to the earnest money. Contact an attorney and ask. If your buyer is entitled to it, Tell them you spoke to your attorney and the money belongs to your client. Tell them they have till this day at this time to get it signed and returned to you . If it is not there your clients will move forward with retaining an attorney. Hope this helps!


about 2 weeks ago
Bronze
Ryan Kohn
about 1 week ago
This is a tough situation. There are stipulations within the contract regarding when the earnest money can be refunded. If you are within any of these parameters your client should be entitled to a refund of earnest money. If outside those parameters the seller would not be obligated to release. In either case, both parties are under contract to allow meditation to take place for instances exactly like this.


about 1 week ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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