Seller is keeping our 5% deposit (XP from MM)

Re: Seller is keeping our 5% deposit (XP from MM)

• DownToEarthGirl member

  October 2011

  I read some of this and actually talked with my RE about this same scenario when we went to sell.  She said that she has never in 20+ years seen someone be able to keep escrow money.  She's only seen someone keep the "good-faith" money twice in that time and otherwise, the downpayment escrow money has always been released.  That's just one RE, but she sells like 20-30 houses per year, so I think she's got some perspective - hope it works out in your favor. 

  I hope your lawyer gets the $37k back without having to go to court.

   

  

  Are you united with the CCOKCs?

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• unbreakablecomb

  October 2011

  Thanks for the hope! 

  I've been mired in the stress of this mess that I can only see what can go wrong.  It's nice to know that there is a good chance we will actually get our money.
  

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• Justinlove mod

  

  October 2011

  You need to get an experienced real estate and contract lawyer since their ability to keep it completely depends on what is written in the contract you signed.  I hope it works out in your favor.  May I ask why your earnest deposit was so large? 

  Crafts for Lily
  My Valentine Bookends (2~13~13, 2~15~09)
  

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• car_ramrod

  October 2011

  I posted in the other thread as well but wanted to circle back and let you know that we had a buyer for our house that just changed their mind  We were a week away from closing and they decided not to buy the house.  My realtor said that even though they had no legitamate reason (ie. inspection or financing contingency) if they tried to fight it odds were it would just sit at a stailmate for years and would probably eventually go back to them anyway.  They didn't fight it because I think they felt bad about it but in our state the laws are definitely more in favor of the buyer than seller when it comes to escrow money.  Hopefully it is like this in your state as well even though you obviously have a legitmate contingency that is covered in the contract.

  
  

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• +Elle+ member

  

  October 2011

  I'm not sure about this, but my guess would be that the contract had a "best efforts" clause and the sellers are going to say that by not seeking loans from additional lenders you did not use best efforts to obtain financing. My offhand take is that the specific provision allowing you to enforce the finance contingency with a single letter of denial should trump the best efforts clause (so the sellers are wrong) but I think they could make a legal issue out of it in the short term if they want to be azzholes. I do think you are absolutely in the right, but I can see how someone might say failing to contact more than one lender for financing is not best efforts. Not legal advice, this is just what stands out to me skimming your post. Good luck - we have $17K in an escrow account right now and I'd flip out if we walked away and the sellers tried to keep it.

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