Getting Earnest Money When Realtor/Seller Refuse to Take Action

[Chris Hafner]

I’ve read the posts on getting earnest money back and I did not see any that are quite like my situation. Basically, I was in the process of purchasing a property when it became clear that there would be substantial repair costs and the property would not pass inspection. I am an out-of-state buyer and the owner was not willing to negotiate on any of it. I backed out of the contract and I have $1,000 in earnest money that is just sitting with the title company. They will not release it to me unless they receive a document with signatures from both the seller and buyer. The owner has allowed me to keep the money, however the realtor/listing agent that I was working with on this deal is not doing anything. I’ve contacted him several times but weeks have passed and it’s clear he’s not going to be able to get that signature I need.

At this point I don’t see what incentive either the seller or realtor have to take any action at all on my behalf. Has anyone experienced anything like this and what recourse do I have? The only thing I can think of is to reach out to the company the realtor works for and see if they will turn up the heat, although I’m not sure if the property was listed through the company or on his own.

There’s also the option of an attorney but I don’t see what they could really do either. I would greatly appreciate any help or advice from anyone.

[Brian Pulaski]

Send an email copying ALL parties (realtors, broker, sellers, title company) indicating you are exercising your right to back out due to inspection contingency. If there is any document that needs your signature and the sellers, have it signed and attached, with hard copies being sent to the seller for his signature (let them know this via the email). I would request response from the seller confirming they have agreed and will sign as needed...

If the seller has no issue with this (as it sounds) then I don’t see why they aren’t signing.