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Updated about 2 years ago,
Earnest Money Disagreement - Help Needed!
Hello all - Help / Advise Needed -
In May of 2021 I entered into a purchase agreement for a duplex with 1 unit vacant. After we signed the agreement, the Seller filled the vacant unit with a tenant who was not background/credit checked and a boyfriend who was not on the new lease and also not background/credit checked. I know, Red Flag City, but we tried to make a deal work and offered many different options to get both tenants on our lease. Seller would not budge and became extremely argumentative and aggressive towards us.
Due to this change in the conditions of the property we asked for a cancellation (with earnest money returned to buyer) and did not go to closing. Seller refused to offer cancellation, claims he deserved to keep our earnest money, and threatened legal action.
We did not close. No legal action was taken on either side. Our broker suggested we wait and the problem should resolve itself. He said Seller is supposedly not able to sell until this is resolved.
Seller re-listed with a different brokerage and recently sold. Our earnest money has not been returned. It's currently with Edina Realty Trust.
Has anybody ever seen this before?? What actions can I take to get the earnest money returned?? Help!!
It seems like a cut and dried case. You bargained for the property as it was shown. The seller changed the deal and you have every right to either get out of the deal unscathed or to the original deal as it was shown.
I've gone to small claims twice. Once as a plaintiff (I won) and once as a defendant in an escrow dispute (I won that one too). You can go without a lawyer and represent yourself and with a case that's so clear cut, I (as a NON LAWYER) think it seems like you should win.
The other thing you could try is to pay an attorney to write a demand letter. It might cost a couple of hundred bucks, but could possible get your money back to you a lot faster.
Good luck!