Termination, yet cannot receive my earnest money deposit back???

Termination, yet cannot receive my earnest money deposit back???

Member since 2022 · 40 posts · 3 votes

What would you do in my situation

1 - I paid $20K for the earnest deposit.

2 - I had 2 contingencies in the contract: inspection and financial

3 - I sent a termination notice (signed real estate form) before the inspection contingency deadline because the property had asbestos. Th deadline was 2/15.

4 - However, the seller only sent an email saying they received the termination and wish me good luck but did NOT sign it back

5 - The title company says that unless the seller signs the termination back, they cannot release the $20K back to me.

Really???

What should I do?

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  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    4y

    This is pretty standard...while title could likely decide to refund based upon the contract and terms, doing so potentially results in them defending themselves from the seller. So instead they require mutual agreement.

    If the seller won't agree your option at some point is court to obtain a court order for the refund. Hopefully if you simply tell the seller you need the signed cancellation back they'll do it and everything will be fine.

  • Member since 2022 · 40 posts · 3 votes
    4y

    I did ask politely but not answer....any pressure for the seller to sign? It looks too easy to hold the deposit until court action.

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