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Updated over 8 years ago,
Earnest Money Issue in Houston
Good Afternoon BP Members!
I've got an issue and was hoping to get some advice to push me in a direction in which I should go.
A couple months back, we found some condos we wanted to purchase/and or wholesale. We put everything under contract and put down $5,000 earnest money to hold.
In our contract, we had an inspection period in case financing fell through or our buyers fell through. Our contract says:
"Buyer shall have up to 15 days before close of escrow (the "inspection period"), which is May 20th, 2016, during which time Buyer will have the absolute right to cancel this contract for any reason whatsoever, in buyer's sole and absolute discretion."
We executed our inspection period opt out and sent in the cancellation form to our title company, to which they sent out a release of earnest money to me and the seller. The seller emails back, "Before acknowledging or signing this release, I want to gather all the facts (emails & texts) to determine the possibility of a breach of contract with my attorney."
Now the title company is telling us they can't release the funds because of what he said, even though our contract says differently.
Does that make sense? What would you do in this situation? Hire a lawyer and have him look over everything and speak with the title company?
I understand a lot of advice like this would need to be confirmed by an attorney, but even a kick start in the right direction could be quite useful. Thank you!