Assignment of Contract Earnest Money
I have been helping my mom look for properties since she is retired. She has a self directed IRA in which all funds have to come out for purchasing properties. She found a property and put 2000k for earnest money on the wholesaler Assignment of Contract. She cannot get funding through traditional financing and hard money because Fannie does not want to see IRA owing the house. My mom told the wholesaler the check she is writing is not valid because the monies have to come out of her IRA account. She could not get the funding so she cancelled the check for 2000k, now the wholesaler says Title company will persue legal action for breach of contract. My questions is the assignment contract is not a Trec form and does this contract hold any merits? The assignment contract does say buyer hereby agrees to pay original buyer non refundable earnest money in the amount of 2000.00. Earnest money to be credited towards agreed upon assignment fee. Is this really enforceable since this is not a true Trec contract or real estate agent was not involved?