Title Company Sent Escrow Deposit to Seller instead of Me

[Jerry Ologh]

       I canceled the contract to buy a fourplex because my lender concluded that the property did not pass their underwriting requirement, and will not fund the purchase-- notes/proof of this was provided to the seller and title company. My realtor informed me that I would be getting my money back, and asked me to sign the release of the escrow deposit document. Unfortunately, the seller had changed the document to say funds should be sent to them (the seller). Without reading the document, my realtor forwarded the document to me, and I signed with the knowledge that funds were coming back to me (I have text messages of this as proof). The title company sent the escrow deposit to the seller. I informed my realtor of the error, and he tried correcting it, but the seller refuses to refund the money to me and will not return calls anymore. Do I have a recourse to get my escrow deposit back or is it gone for good? The deposit is less than 10k and I live in Texas. Thank you!

[Wayne Brooks]

That’s a tough lesson. You and your agent both screwed the pooch. The seller has no liability since you signed a document agreeing to give him the money.