All Forum Posts by: Bhanu P.

On some of the Cash offers, I go with huge EM and quick closing to make my offer get picked among other potential offers. Basically I am making cash offer with no contingencies and huge EM to show the seriousness to Seller.

This practice is something that I am following for some time and felt that it is giving good results than regular $1000 EM offers in this area.

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@Shadonna Logan

Per Seller, they declined 6 offers (some of them are better than mine) since I am under contract.

To mitigate that loss due to my contract termination, they want to either keep my entire EM after legal battle or to get $2000 from me without any legal battle.

Seller did not spend any money to improve the property or such. Their claim is just the lost time and in fact it is same waste of time for me since I haven't put my money to work during this time.

All I feel is that they are trying to use scare tactics on me. At this point, according to contract it is clear black n white on who/when/how should get EM.

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@Jay Hinrichs

We do have disclosures email on 12/08 and we sent them terminate notice on 12/14 (6 days).

We did this communication in the email and hence proving can be easy. From what I see from Seller's point of view is they are disappointed on this termination notice from me. This SFR property is in the market for more than an year in a hot market.

They initially listed for around $200K and the contract price that we agreed is $150K (yes, they overpriced it and hence not able to sell).

During this 1 year, they reduced price multiple times and when they got my offer they might have relieved from the pressure of owning this vacant property; when I terminated the property they are not so happy with the result.

As far as I am concerned, during the due diligence process, I felt that I might be paying more that what I "should" pay and I like to terminate the contract since I do have the option to do so per the contract. Have to see their response now since we sent them notice through Title company.

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Originally posted by @Harriett Williams:

You need real legal advice. Have you talk to a Real Estate Broker in TX?

Thank you @Harriett Williams

No I have not spoken to one yet but I scheduled a telephonic appointment with the Attorney in the title company who is familiar with disputes of this sort.

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Originally posted by @Guy Gimenez:

@Jay Hinrichs

Title companies in Texas can hold the disputed amounts up to a two years. Fortunately, Justice of the Peace Courts (the "People's Court") handle amounts up to $10K so it's pretty easy to file an action for less than $150 and it can usually be resolved in less than 60 days. A title company won't release disputed funds without a finding by the JP Court. Been there, done that.

Thank you again @Guy Gimenez

EM in this transaction is $50,000 and small claims court is not an option.

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Originally posted by @Jay Hinrichs:

@Bhanu P. not sure in Texas but in most states if its a stalemate the title company files an interpleader with the court and sends the EM there... then its up to you to file a motion to get the money IE basically litigate for it.. and of course the cost of this far exceeds the normal small EM.... Not sure if small claims court would handle this though.

Thank you @Jay Hinrichs

I am not sure if it is stalemate for the Seller due to this EM litigation. I need to talk to title company on this.

EM is $50,000 and small claims court do have $10,000 limit in Texas.

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Originally posted by @Guy Gimenez:

YOU should have delivered Notice of Termination of Contract directly to the seller in the manner allowed in para. 21. Your agent "should" have delivered the notice directly to the seller as well and your agent's failure to do so in a timely manner will likely place some liability on the brokerage, but that will be another matter altogether.

Bottom line is that IF you or your agent delivered the notice directly to seller within the 7 days after you received the Disclosure, you have the statutory right to terminate the contract. The real issue will be proving the notice was delivered as required.

Thank you @Guy Gimenez

Buyer's agent emailed the notice to Seller's agent in a timely manner and burden to prove this can be easy as we did everything in the email (we received the disclosures in the email too).

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Originally posted by @Nicole Garner:

The key to your claim is going to be the timeliness and manner in which your agent delivered your termination notice to the seller's agent. The Texas Association of Realtors has covered this scenario.

My buyer gave the seller a timely, written notice that she’s terminating the contract under the termination option in Paragraph 23 of the One to Four Family Residential (Resale) contract. The seller is upset and won’t sign the TAR Release of Earnest Money form. What can my buyer do to get her earnest money? (updated Feb. 20, 2015)

Under the provisions of Paragraph 18 of the contract, your client could make a written demand to the escrow agent that the earnest money be released. As long as the seller doesn’t object in writing to that disbursement within 15 days after the escrow agent provides a copy of your client’s demand to the seller, the escrow agent may release the funds to your client. Following these steps for disbursement releases the escrow agent from liability related to the disbursement.

If the seller does make a written objection to the disbursement, or his own written demand for the earnest money, the buyer will have written evidence to substantiate the seller’s wrongful refusal to release the earnest money. This might make it easier for the buyer to recover the liquidated damages stated in Paragraph 18:

-Three times the amount of the earnest money
-The earnest money-
-Reasonable attorney fees
-All costs of suit.

Although the amount of earnest money involved in any given transaction may not be substantial, a party who wrongfully fails or refuses to sign a release could end up liable for more than just the amount of the earnest money held by the escrow agent.

- See more at: https://www.texasrealestate.com/for-texas-realtors...

Good luck @Bhanu P.

Thank you @Nicole Garner

I wish Seller will release Earnest money soon so that I do not have to spend my energy on legal issues.

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Originally posted by @Kevin Harrison:

I'm pretty sure that illegal, but I'm no lawyer. Make sure you have all your documentation in order, and let them know that you will be contacting a lawyer if they do not fork over the earnest money. Make sure you get all correspondence with them in writing from here on out in case you do have to take this to court.

Thank you @Kevin Harrison

We are keeping all the communication in email and I believe in the State of Texas, electronic communication is valid form of legal communication in this nature of transactions.

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All Forum Posts by: Bhanu P.

Bhanu P. has started 16 posts and replied 66 times.

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form

Post: Seller is refusing to sign Earnest money release form