Realtor Not Returning Earnest Money. Cancelled My Check

[Lokesh W.]

I have never backed out on a deal for which I have paid earnest money before.

I had an accepted offer on a duplex. I mailed my earnest money but later I changed my mind because another offer of mine got accepted so I asked the realtor not to deposit the money. The realtor had NOT yet received my check in the mail but he said that based on purchase contract, he has to deposit the earnest money. He asked me to spend $400 on property inspection and then cancel the deal or go through the complete financing process and pay the fees for financing and then reject the deal. He basically did not want to let me go easy.

I cancelled the check so now, he says he wants $600 for attorney fee of the seller. My understanding is that if we don’t pay the earnest money on time (5 days), the contract is null and void but he is insisting that I pay $600.

Accepted offer: Friday evening (2/22)
Mailed earnest check of $2000: Sunday
Requested to cancel the deal: Monday afternoon
Cancelled check: Tuesday morning
Realtor requesting $600 attorney fee: Tuesday night

This is really bothering me because people lock up properties deals for 60 – 120 before closing and when they don’t close, they still get their earnest money back. I tied up the property for 2.5 days (Saturday, Sunday and Monday Afternoon) or 1 business day (Monday) and still I am expected to pay $600!!

This attorney is from a small law firm (just 1 or 2 people lawyers).

I don't understand why they are giving me such hard time about this. Before my acceptance of the counter offer, he said that he is expecting couple of more offer so I have to accept immediately and he will accept other offers as a backup only but now, he is trying to just get to me.

I have contacted my attorney but I wanted to know anyone has been in this situation before.

Any suggestions are greatly appreciated.

[Account Closed]

Originally posted by Lokesh W.:

I wanted to do the inspection and I mentioned the possible dates that the property inspector had the availability but the realtor replied by saying that there is no need to do the inspection instead pay the attorney fee or $600. The inspection would have cost me $350.

BTW, what happens if someone does not pay the earnest money? Is there a fine for this? Does the purchase contract say there is a fine for this?

Why are you asking us what your purchase contract says? How would we know since we don't anything about the contract? I suggest reading it.