Originally posted by @Tom Gimer:
In 2018/19, Maryland passed a new law regarding earnest money deposits (EMDs). As the buyer, you should have executed a specific agreement concerning that EMD. What does it say?
Despite what has been stated in this thread, there is no law requiring a release to be signed by both parties in order for the holder to release an EMD. While that is standard practice, it's not the law.
The new Maryland law mirrors laws concerning real estate brokers and EMDs that have been on the books for a long time. The holder of that EMD likely has reserved some discretion in the agreement as to the disposition of the EMD. For example, our EMD agreement provides that when both parties do not sign a release, we can evaluate the claims of each party to the deposit... and then give notice of our intention to release the deposit after X days, to whom, and why. This notice and the justification provided in it usually gets the parties to discuss further and resolve their dispute. If either party properly opposes our notice, we interplead the funds (after deducting our fees and expenses for doing so).
In order to file a lis pendens you must first file a lawsuit regarding the matter. Depending on the amount of the EMD, taking that action may or may not be justifiable.
We spoke with a MD real estate attorney today (free consultation thing) and he mentioned the interpleader. Specifically, he said that since the funds are being held with the our (buyer's) escrow company (which is a MD company), our agent has to file an interpleader with the court. I asked him to clarify that he meant our agent, and not the escrow/title company, and he said yes: our agent has to file it. Does this make sense to you? Hopefully our escrow company has this same EMD agreement with this type of discretion. The lawyer also said that filing an interpleader automatically puts a lien (lis pendens) on the property. Sound right?
The amount in escrow is $2,500 (for your reference).
We told our agent this, and she is going to contact the escrow company, as well as her broker.
A few more things that have happened since my last post, for those interested (this part is just a vent): We started the process of filing a complaint to the MREC. We haven't submitted our supporting documents yet nor signed the final document to make it 'official'. However, even with our hitting the 'submit' button, it's gone to the MREC. A day after we did this, the seller called our agent's broker to complain about this. The broker called our agent asking for details and she relayed them. The seller then called our agent directly and started yelling at her. Saying that she (our agent) told us to sue her; she's (seller) going to sue us, blah blah, just being crazy and combative.
Now, the seller is saying she never knew the money was deposited into the escrow account once the contract was ratified -_- Our agent sends her the email with proof of the escrow company receiving the funds (which was also sent to the seller's agent...so she should have had it). The MREC calls our agent; our agent explains and forwards them (MREC) that email as well.
I don't believe that she never knew the funds were in escrow. Why would our agent send a 'release from escrow' document (along with the 'release from contract' document) if there was no money to be released.
We just want our $2,500 back -____-
