Seller not releasing the earnest money

Member since 2023 · 4 posts · 0 votes

Hi All,

I was under contract for buying the house there were few contingency in the contract like inspection, appraisal and mortgage approval.
my loan got declined and bank officer sent a letter to escrow and sellers agent within the contract time frame. on the same date we signed the contract to nullified siting the contingency and return the earnest money back

now the seller is not signing the contract to release the earnest money . how do i get back my Earnest money , I am new to US i have legal plan insurance with met life , yet to hear from the attorney

what are my next steps ?

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Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

Have your realtor contact their realtor and get an estimate on when you will be getting your money. The seller doesn't have the money, their realtor does in trust.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
Have your realtor contact their realtor and get an estimate on when you will be getting your money. The seller doesn't have the money, their realtor does in trust.
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Syed Quadri
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Member since 2023 · 4 posts · 0 votes
3y
Quote from @Syed Quadri:

Hi All,
I was under contract for buying the house there were few contingency in the contract like inspection, appraisal and mortgage approval.
my loan got declined and bank officer sent a letter to escrow and sellers agent within the contract time frame. on the same date we signed the contract to nullified siting the contingency and return the earnest money back
now the seller is not signing the contract to release the earnest money . how do i get back my Earnest money , I am new to US i have legal plan insurance with met life , yet to hear from the attorney
what are my next steps ?

I have asked my realtor he is telling to involve the Attorney ,as the seller is not signing the release
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Syed Quadri
OP
Member since 2023 · 4 posts · 0 votes
3y
Quote from @Theresa Harris:

Have your realtor contact their realtor and get an estimate on when you will be getting your money. The seller doesn't have the money, their realtor does in trust.

I have asked my realtor he is telling to involve the Attorney ,as the seller is not signing the release letter for releasing the earnest money from Escrow

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
Quote from @Syed Quadri:

Quote from @Theresa Harris:

Have your realtor contact their realtor and get an estimate on when you will be getting your money. The seller doesn't have the money, their realtor does in trust.

I have asked my realtor he is telling to involve the Attorney ,as the seller is not signing the release letter for releasing the earnest money from Escrow

Then call one, but also have your realtor call their realtor directly and let them know that a lawyer is getting involved and to tell the seller that they will be expected to pay for that as well.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Theresa Harris:

Have your realtor contact their realtor and get an estimate on when you will be getting your money. The seller doesn't have the money, their realtor does in trust.

maybe .. or maybe its more likely a title company is holding it.. some brokers hold EM but the vast majority of EM in the US is held by title/escrow company.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
how much is the EM.. ???
if the seller wont sign a release your contract may have a mandatory mediation clause. normally hiring an attorney over a few grand of EM is no a vaible option since the attorney will charge more than you will get back. The title/escrow company will hold the money while seller and buyer negotiate it out.. if no meeting of the minds within a set period of time the title escrow company will inter-plead the funds to the courts then you will need to act for yourself or hire and attorney to make a claim to the court.
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Syed Quadri:

Hi All,
I was under contract for buying the house there were few contingency in the contract like inspection, appraisal and mortgage approval.
my loan got declined and bank officer sent a letter to escrow and sellers agent within the contract time frame. on the same date we signed the contract to nullified siting the contingency and return the earnest money back
now the seller is not signing the contract to release the earnest money . how do i get back my Earnest money , I am new to US i have legal plan insurance with met life , yet to hear from the attorney
what are my next steps ?

I find it remarkable the seller would even accept your offer. However simply have the realtor get it from the sell side
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