getting back a deposit check

**frustrated** · 01-28-2008, 03:42 PM

Hello,
My wife and I had put in an offer on a house back in November. With that offer we were required to give a deposit check. Well we were not 100% sure if we wanted to go through with the purchase until after the home inspection was done and after we talked to a structural engineer. After paying for the inspection, we talked to the engineer and decided the house was too much work for us. Now, here's the issue...The listing agent has been giving us the run around about getting our deposit check, telling us the seller is in India and she will have her sign the paperwork when she gets back. The latest is that the seller decided to stay in India longer, but we have been waiting for two months to get our money back which we need for another house we DID end up buying. Can anyone help out with advice or information???!!! Please!!!!!!!!!!!!!!!!!!!!!
thank you, Jim EHling

**krolfe** · 01-28-2008, 05:14 PM

If you do not feel that the agent is being honest with you then first you should confront the agent. If you still are not satisfied with their response, let them know that you would like to speak directly with their broker. Tell the broker how you feel about the situation. If you still are unable to resolve the situation, let them know that you are going to take it up with the board of realtors. Contact the board of realtors and they will inform you of the procedure that needs to be followed. You could also have the escrow company that is holding the check to try and have them contact the seller directly. Good Luck!

**REbuyersgroup** · 01-28-2008, 05:50 PM

Bump to "Krolfe" Good advise.

Question is "Where is the money????" Title company, Real Estate Boker, Escrow company?

Each has different procedures on handling deposits.

If the money is with an Title and Escrow company, ask to speak with the Attorney (Principal) about your situation.

After review they may see that the cancellation is within the inspection preiod and release the funds without requiring the sellers to agree.

In this day and age, we have email and fax. There is NO reason someone cannot respond in a few days. Never Months!

**krolfe** · 01-28-2008, 05:55 PM

I agree, contacting the title/escrow company should probably be the first step. I would not expect them to release the money without consent from the seller. A title company acts as an outside third party. The are there to follow the guidelines of the contract, but with consent from both sides. Even though it probably fell with in the time period given, they will still want permission from both parties for liability purposes. They should however be willing to assist you in contacting the seller because they will not want to keep the file open if they know it will not go anywhere.

**Greg** · 01-29-2008, 05:40 AM

If you are in North Carolina the agent can not release the money without the signature of the seller. If the seller refuses to sign there is a way to get it but it takes about 6 months.

**carlam** · 02-13-2008, 03:39 AM

There is email and faxes so a client being out of country is no excuse. You need to take it to the next level.

Hopefully you gave written notice of the inpsection results and request to be released from contract based on issues discovered at time of inspection within the inspection period stated in contract.

Forward that written notice to broker and Escrow holding company and ask your agent to fill out a Relese of Escrow form (if not done) and include it with your request. Do you have a copy of escrow check? Include that as well.

**RobM** · 02-15-2008, 09:42 AM

I think the rules are basically the same everywhere...the seller needs to sign a release of funds doc. The only time I have heard that that is no required is if the broker takes on the responsibility and releases the funds himself...but if there is a conflict over funds later, the broker is responsible. I would speak directly with the broker as it is his/her neck most likely.

**TobyMunk** · 03-12-2008, 02:12 PM

Don't you hate it when people ask a question get like 5 replies in the first 2 days after posting. Receive excellent advice and are never to be seen again.

I guess that is the risk of answering a newbie. Would be interesting to learn what happened with the earnest money. Can not believe what agents are trying to get away with.

Here in Aspen the lawsuits would be flying so fast you would not have time to clean out your desk before the pink slip.

**JJohnson1985** · 03-12-2008, 04:29 PM

What happened with the money is the big question. I hope frustrated does let us know.

I do have a question though. Why would the title company not have the right of returning the deposit, if it is in the contract, and everything is documented and the dates fall in place with the dates in the contract? (I know, run on) The title company is a 3rd party, who has to follow the contract. If there is no question the buyer should have their deposit returned, then isn't the title company required to do it? The seller's ok does not matter, only the contract, right?

I agree with earlier posts, and this was the first question that popped into my head. The seller being in India does not matter. Even if faxes or e-mail could not be used, the paperwork could still be mailed. Something is shady there.

**RobM** · 03-12-2008, 04:38 PM

Actually you are both right and wrong. Yes the Title company can return the check/money if they so choose, but only as absorbing all responsibility in the event there is an issue with the return, regardless of contract. The Seller must sign a release form in order for it to be returned...dont make the rules, just follow them. Again, if the broker or title company or whoever is holding the money chooses to release it, they are on the hook if the seller has issue with the money and can sue the title company for that money that was returned without their authorization.