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02-18-2011, 06:49 AM #1
Renter
- Join Date
- Feb 2011
- Location
- Huntsville AL
- Posts
- 1
Buyer is holding earnest money hostage till new contract and closing
There is a buyer that will not sign off on returning the earnest money until he gets a new contract on the house and closes. I just want out of the contract so I can get into another contract. I would also like to have my $1000 earnest money back. The reason for terminating the contract was because my bank would not fund me for this house due to an unclear title. I have had my bank send the letter to the him and his agent and they will still not let me out of the contract. What is my next step?
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02-18-2011, 08:47 AM #2
Moderator
- Join Date
- Sep 2007
- Location
- Outer Banks
- Posts
- 1,282
Your post is a little confusing but it sounds like you are the buyer and the seller is holding the earnest money. If so:
If the house has a clouded title then the seller is obligated to return your earnest money.
The seller is also obligated to pay the listing agent a commission because the agent did their job but the seller could not close because of title problems.
Your agent is due their MLS commission from the listing agent because your agent did their job and brought a ready willing and able buyer but the seller could not sell.
Have your agent demand their commission from the listing agent and this will force the listing agent to get tough with the seller and then maybe you can get you your earnest money back.
A little convoluted but this is the pressure you have to apply.
Your agent might not understand at first but MLS rules are such the your agent is due their commission and can use this to force the issue.
Something else you can do is record your contract against the title to the house and it will make it difficult for the seller to sell. If you threaten to do this it might knock some sense into their thick skull.Your Outer Banks real estate agent. Learn how to buy Outer Banks foreclosures.
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