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What your buyer can do to get her earnest money back after termination | Advice for Texas REALTORS® | Texas Association of REALTORS

I'll try to keep this short. A buyer and his real estate agent kept assuring us that a deal for our property was a sure thing.

Earnest Money Demand Letter All Locations : Nationwide Real Estate Advice

They made us jump through a bunch of hoops in a hurry to put the deal together and we, in effect, took the property off the market for over a month. They then asked for a week's extension. On the last day, they informed us that their credit was denied. This occured about a month ago. Since then, I have been asking the real estate agent and his broker for proof that they applied for a loan within five days and for a copy of the turn down letter from a 'financial institution".

I feel that I am being stonewalled and now suspect that the buyer did not live up to the above obligations as stipulated in the Purchase and Sales Agreement. I feel that I am entitled to the earnest money currently being held by the escrow company who also jumped through a lot of hoops with no reward to put this deal together.

I've been told that I need to send a 'demand letter'. Can someone tell me what I need to put in a 'demand letter'. Do I send it just to the buyer or should I also send it to the escrow company and to his realtor? Should I send it registered mail? I've been told that I'll never see the earnest money regardless of what I do. However, I want to make this buyer and, especially, the lying real estate agent jump through a bunch of hoops just like I had to. I don't really want to see and pay for an attorney so any and all advice and words of wisdom would be appreciated.

Sat, Mar 24 1: Also see similar post Reply. What does your contract say about releasing the deposit? What does it say about issuing a performance demand letter? Yes, you want to send a performance demand letter, one that aligns with your contract. Send it certified mail or Fed Ex where you have a tracking receipt of delivery.

EARNEST MONEY DISPUTES IN TEXAS RESIDENTIAL TRANSACTIONS

Sat, Mar 24 5: What does Your realtor say? Sat, Mar 24 7: And who was the buyer's realtor? It was the realtor that I had just fired. He swore that he had no idea that this was coming and told me, several times during this process, that since he was no longer my realtor, he couldn't offer me any advice. Then, when the deal fell through, he sent me three eMails and called me four times over the course of two days trying to get me to sign the paperwork saying the deal was over so his client could get the earnest money turned over to him I finally asked why he was being so insistent and that's when he fessed up that it was to release the earnest money.

That's when I started thinking that perhaps I do have a right to the earnest money. I asked, in writing, for proof that the buyer had applied for a loan within five days and proof that he had been turned down by a lending institution. And I've got nothing so far regarding this request.

So, I understand that my next step is a demand letter.

Wrongful Failure to Release Earnest Money Has Consequences - San Antonio Real Estate Attorney - Trey Wilson

That's why I asked my original question starting this thread which hasn't been answered by the way. So, I really really would appreciate it if someone would look at my question and give me a response. The purpose of a demand letter is two fold. Two, courts insist on evidence that you have made the first attempt to get what is owed you. If you go to court without any attempt to collect first, the courts may throw it back at you to send the demand letter, and things get delayed.

Then state, due to the fact that closing did not occur, the contract has been breached by the buyer and you expect the deposit to be released to you immediately. Sat, Mar 31 6: I am a realtor in WA. What did the financing addendum say? There should have been a waiver deadline.

If it wasn't filled in, the time frame would have been 30 days. YOUR realtor should have requested they waive their financing at that 30 day deadline. If they waived their financing, then said, oops, we can't get a loan AFTER that time, you are entitled to the earnest money.

Read Form 22A of your contract. It explains in there that the buyer is required to get you updated loan information. You should just request it through their realtor. Fax it to their realtor.

Are you past a closing date? Sounds to me like you need to get your house back on the market and fight with these folks at the same time. If you want some additional info, let me know. I might be able to help you out. Hopefully, you have a good, ethical realtor as a listing agent. Mon, Apr 2 Thank you very much for responding to my question. I hope, with this additional information, that you will be able to help me further.

Firstly, at the time of this transaction, I had no realtor. I had just told my realtor of seven months that we needed to try someone else. THE VERY NEXT DAY, my realtor whoops my old realtor brings me this offer from this buyer telling me it was a legitimate off and that the financing had been arranged.

Being the nice guy that I am, I took him at his word. The buyer was hooked up with a group called PALS out of salt lake city. They asked for a deep discount and we gave it to them. I keep thinking all along that there was something fishy with this group and kept asking THE realtor about it. He kept assuring me that it was a done deal and that we just needed to complete the paperwork.

The inspection was done, we made some adjustments. We had the septic tanks pumped on a weekend. Since this is an estate, all four members of the family signed papers. We jumped through a lot of hoops because they wanted to close by the end of the month Feb. They then asked for an extension of one week.

I quizzed THE realtor. He said it was because the paperwork wasn't completed. On the last day, at the last hour of the extension, THE realtor called and said they were turned down because of a credit report.

He then tried me to sign a form that would have returned the earnest money then in escrow back to the buyer. And I mean he was hot for me to sign it with emails and phone calls over a two day period. I looked more closely at the buyer's financing turndown form and saw that it was signed by someone from PALS.

This organization passes itself off as a consulting firm, not a financial institution. According to the purchase and sales agreement, the buyer had to have applied for a loan within five days of signing the agreement.

I suspect he did not.

I also suspect that he didn't apply personally for a loan at all and was expecing PALS to arrange for it. I asked THE realtor for proof that he had applied for a loan from a financial institution within five days as specified in the PSA and that he was turned down by a financial institution not PALS.

The realtor said he would get it. Then, after a few days and an email from me, he turned it over to his broker. Although responsive at first, I have not heard back from his broker in over a week now. I really think that I am entitled to the earnest money but am unsure of how to proceed. Do I send a demand letter to the buyer or to the escrow company?

If to the buyer, then do I cc the escrow company and the broker? And what's in a demand letter? And when, as I am sure what will happen, the buyer ignores me, what do I do next?

I doubt know if we will ever receive the earnest money.

And its really not that big of a deal to me. But we were jacked around by this buyer and THE realtor. I would like to give them some of the same. Any help would be appreciated. Page 1 of 1 8 items RSS. My Community Community Membership Sign In New Users: Free Registration Search Community Search. Find Highly-Rated Lawyers area of law OR name. Multiple Locations Matched Your Search Legal Professionals Build Your Business Lawyer Login Register.

Other Resources Martindale-Hubbell Nolo TotalAttorneys Canadian-lawyers. Connect with Us Lawyers. Earnest Money Demand Letter Reply I'll try to keep this short. LisaQ Consumer Joined on Thu, Nov 11 Posts 2, Also see similar post Reply What does your contract say about releasing the deposit? Cygnusx Consumer Joined on Sat, Sep 10 Posts Earnest Money Demand Letter Reply What does Your realtor say? Earnest Money Demand Letter Reply MY realtor?

Earnest Money Demand Letter Reply I am a realtor in WA. Earnest Money Demand Letter Reply Thank you very much for responding to my question.