How to get earnest money back. title company not cooperating.

Question

what can I do to get my earnest money back. I talked to the wholesaler he cant get a release from the seller. he assigned me the contract. and the seller is not even the correct owner but WFG National title says I still need the release from the seller. What are my options? I never had this problem every time we dont close I always get my money back.

Account Closed · Answer

If the signed purchase and sales agreement has the incorrect seller name and the deal fell through then that is a cut and dry case of a contract being void and you should get your money back no problem.

I'd get a copy of the purchase contract, the current deed and tax card to show that the deal is null and void due to incorrect or fraudulent information. If they still won't release the funds then I'd probably ask to speak to a higher up at the title company.

This isn't rocket science but at least a title company is holding the funds.

Eliott Elias · Answer

If a contract was signed with the wrong seller, your earnest money should be released with no permission from the phony seller. If the Wholesaler is the issue, you may just have to take legal action to get it back if they don’t want to release it.

Wayne Brooks · Answer

@Ceasar G. Title companies don’t make decisions about whether to release EM’s or not, and to who….they simply release it when the parties involved come to a written agreement or as per a court order when the parties don’t agree. These things happen with many wholesalers. Who would accept a purchase contract without even knowing if the seller name on the contract matches the recorded owner of record? This means zero research on basic prelim title info by both of you.

Justin Vogelgesang · Answer

It depends on why you're expecting the EM back. Typically if a buyer defaults on performing their end of a contract, that money is not returned. If title is not clear, then that should be a different situation. It will mainly depend on what contract you signed with that wholesaler though.

Ceasar G. · Answer

Im direct with the wholesaler. but he assigned me his contract. The title company said they need a release from seller.(by "seller" they mean the seller to the wholesaler). The odd thing is that this is a major wholesaler, I get their email on weekly basis I can't imagine this not happening to them before

Chris Seveney · Answer

@Ceasar G.

We’re you direct with the wholesaler or seller? Who is your agreement with?

Why are they not returning the funds ?

How to get earnest money back. title company not cooperating.

How to get earnest money back. title company not cooperating.

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