Contract says we can get it back after 2 years. It's been over 2 years and the Title Company still will not release the funds back to us without both party's signature; says he's not a Broker and I will need a judgement to get my money back. Should I sue the Title company or the seller?
EMD isn't about or between the agents. Its only between the buyer and seller and administered by escrow. The agents dont control how it works etc. I think too many people think agents make the rules etc, when the state's legislatures etc are the ones deciding how real estate sales actually work.
Include a "pre-approved release of EMD" clause in the contract: "Buyer and Seller agree that if Buyer elects to terminate the agreement due to an unsatisfied contingency, then the escrow agent is authorized to return the earnest money deposit (plus all earned interest) to Buyer without further approval of Seller." If Seller disputes the release after signing this clause, that is grounds for filing a lis pendens against the property title. The LP must clear before Seller can sell property.
So I guess all sellers are just scammers?? ( At least that's what I get from the comments) If a buyer signs the contact then, takes someone's property off the market for a substantial amount of time, only to back out 3 days before closing, I think they should lose their EMD! In my case the market cooled off during that time and we had to drop the selling price, losing way more than the EMD plus all the other things that are delayed. There are scammers out there for sure but, regular home sellers are not trying to Rio anyone off. People should not commit unless they are 100% sure they are ready to follow thru.
Having done this 3,000+ times, I can say that MOST buyers don't just release the entire EMD. They always have some excuse and you can't just take the money. Also if a year passes and this isnt resolved, the funds are released to state unclaimed funds (in Nevada) and the buyer can just get it back.
I backed out after inspection, within the 10days inspection period. I wasn’t satisfied by the report, but the sellers won’t release my EM. They don’t agree that the inspection report shows any problems. My realtor isn’t helping me with this… I need help. What should I do?
Same issue. Cancelled 5 days into offer being accepted, and it was because of the inspection. Termite damage, foundation issues, told electrical needed to be updated, plumbing issues, radon mitigation needed, hvac & water heater needed fixing. House was flipped but nothing important fixed. I was told by agent seller would only fix $500 less in repairs, so he already had typed up an amendment for replacing outlets to gcfi and fix a few leaks… but that won’t replace thousands in damage. The seller doesn’t believe in the problems found. Wanted to talk to me directly and I declined, feeling I didn’t want to be cornered into buying something with so many issues. My agent did list something where if the costs to repair home exceeded what I could afford I could walk. It doesn’t however say I would get my earnest money if I backed out. I think standardly, people would request an amendment to contract following inspection or appraisal, and then possibly seller counters. We didn’t do that since mine was listed as is, and then the advice of my agent was to walk if I didn’t feel confident in the sale. So…I did. And seller will not release me my EM.
These people are scammers I don’t trust the loan officers either specially when you get preapproved I don’t believe we should have to give so much til after knowing for sure approved
nice try. it is the agent that accepts the emd check from the buyer. also the emd amount and its term,s are specified in the agent's purchase agreement. the agent needs to make the EMD terms more concrete in the contract so that the escrow or title can act upon the terms. why does it take 3-7 other people's involvement to deal with everything an agent touches?
This is a good idea, except title companies dont want to be in charge of deciding the contingencies etc. Ive tried this and been told they won't honor it. Also sellers wont agree to this usually. The REO sellers certainly won't agree to this. But it is a nice way to resolve it.
Contract says we can get it back after 2 years. It's been over 2 years and the Title Company still will not release the funds back to us without both party's signature; says he's not a Broker and I will need a judgement to get my money back. Should I sue the Title company or the seller?
Truly, appreciate the insight, sir!!!
EMD isn't about or between the agents. Its only between the buyer and seller and administered by escrow. The agents dont control how it works etc. I think too many people think agents make the rules etc, when the state's legislatures etc are the ones deciding how real estate sales actually work.
Thank you
Include a "pre-approved release of EMD" clause in the contract:
"Buyer and Seller agree that if Buyer elects to terminate the agreement due to an unsatisfied contingency, then the escrow agent is authorized to return the earnest money deposit (plus all earned interest) to Buyer without further approval of Seller."
If Seller disputes the release after signing this clause, that is grounds for filing a lis pendens against the property title. The LP must clear before Seller can sell property.
Be familiar with and follow the contract. Understand the contingencies that allow buyers to cancel the contract.
So I guess all sellers are just scammers?? ( At least that's what I get from the comments) If a buyer signs the contact then, takes someone's property off the market for a substantial amount of time, only to back out 3 days before closing, I think they should lose their EMD! In my case the market cooled off during that time and we had to drop the selling price, losing way more than the EMD plus all the other things that are delayed. There are scammers out there for sure but, regular home sellers are not trying to Rio anyone off. People should not commit unless they are 100% sure they are ready to follow thru.
Having done this 3,000+ times, I can say that MOST buyers don't just release the entire EMD. They always have some excuse and you can't just take the money. Also if a year passes and this isnt resolved, the funds are released to state unclaimed funds (in Nevada) and the buyer can just get it back.
$1000 earnest money? Is he kidding?
Thank u im going through this right now.
How did yours go
I backed out after inspection, within the 10days inspection period. I wasn’t satisfied by the report, but the sellers won’t release my EM. They don’t agree that the inspection report shows any problems. My realtor isn’t helping me with this… I need help.
What should I do?
I have this happening to me.
You should walk away
Same issue. Cancelled 5 days into offer being accepted, and it was because of the inspection. Termite damage, foundation issues, told electrical needed to be updated, plumbing issues, radon mitigation needed, hvac & water heater needed fixing. House was flipped but nothing important fixed. I was told by agent seller would only fix $500 less in repairs, so he already had typed up an amendment for replacing outlets to gcfi and fix a few leaks… but that won’t replace thousands in damage. The seller doesn’t believe in the problems found. Wanted to talk to me directly and I declined, feeling I didn’t want to be cornered into buying something with so many issues. My agent did list something where if the costs to repair home exceeded what I could afford I could walk. It doesn’t however say I would get my earnest money if I backed out. I think standardly, people would request an amendment to contract following inspection or appraisal, and then possibly seller counters. We didn’t do that since mine was listed as is, and then the advice of my agent was to walk if I didn’t feel confident in the sale. So…I did. And seller will not release me my EM.
So just wait a year?
That sounds like stealing especially if the property goes in foreclosure of no fault of your own as the buyer
These people are scammers I don’t trust the loan officers either specially when you get preapproved I don’t believe we should have to give so much til after knowing for sure approved
Thanks for sharing. I have a problem related to earnest money? Would you be able to give me your opinion on that?
nice try. it is the agent that accepts the emd check from the buyer. also the emd amount and its term,s are specified in the agent's purchase agreement. the agent needs to make the EMD terms more concrete in the contract so that the escrow or title can act upon the terms. why does it take 3-7 other people's involvement to deal with everything an agent touches?
This is how they scam poor people out their money
In my case the seller back out( seller breached the contract and not willing to sign the cancellation . The buyer willing to pay cash.
Are you able to file a memorandum?
If the seller backed off,he is entitled to give you double the amount of earnest money. Go for legal help. Hope this helps.
This is a good idea, except title companies dont want to be in charge of deciding the contingencies etc. Ive tried this and been told they won't honor it. Also sellers wont agree to this usually. The REO sellers certainly won't agree to this.
But it is a nice way to resolve it.
just leave it to agents so screw with people's money. why can't things be in concrete?