Profile picture for user8376060

Can and how we get the earnest money deposit back?

We signed a purchase contract through a buyer agent. The contract says within 10 days all inspection and written repair requests should be done. The contract was signed on a Saturday. The following Monday we called a well respected inspection company and the earliest date is the Thursday of the following week. (It already exceeded the 10 day limit but we were not aware of it.) We called our agent and told him we scheduled the inspection. He didn't disagree and said he would be in the house to meet the inspector then. We didn't read the contract carefully before signing it for we thought the agent will take care of everything. The inspector found various problems including a foundation problem that caused vertical cracks on the bricks. On the 14th day we made a written repair request through the agent. The seller rejected immediately then they put the house back to the market. Now they found another buyer and we were told the house would be closed soon and the EM would go to the seller. The money is in the broker's account but the broker sounded to have this opinion. Any advice about how we can get the money back?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 20 2013 - US
We think we've answered this question for you!
 
 

Replies (4)

Are the days noted in the contract business or calendar?  

Losing your right to inspect or ask for warranted item repairs....is bad for you, but not necessarily a default.  I would re-read the contract and if you feel you are not in default, consult an attorney. 





  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 20 2013
Profile picture for wetdawgs
You didn't meet the deadlines established in your contract, therefore, the probability of getting your earnest money back is slim to none.

" We didn't read the contract carefully before signing it for we thought the agent will take care of everything."    While it is a pity the agent didn't harass you about deadlines, ultimately you are responsible for reading the contract.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 20 2013
Did the seller disclose these problems? I would ask for a meeting of the agent and the agent's broker. Many times these things can be resolved with some communication. It also depends what state you are in and how the contract reads. In CA, there can not be two separate escrows open on the same property so the seller would be stuck and not able to move forward with the new escrow until things are settled with the first. Also, in CA, both parties must agree on where the earnest money goes when a cancellation occurs. You may have some options, if the meeting with brokers does not work, contact an attorney right away.

Good luck,

Tesa Noonan
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 21 2013
I would say that just by reading what you wrote that per the contract, you did not meet the deadline stated in the contract and therefor will have to forfiet the EM.  However, you maight have a case agaist your Agent (that's why Broker's carry E&O insurance) but I would suggest contacting an attorney right away for all your options.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 22 2013
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
How much does a Home Inspection cost?
Profile picture for Mike Opyd
Latest reply by Mike Opyd
3 days ago | 16 answers
Can the seller keep the earnest money after inspection?
Profile picture for zuser20140628062544588
Latest reply by zuser20140628062544588
5 days ago | 18 answers
4 unit Multi family house
Profile picture for moneyclip8565
Latest reply by moneyclip8565
July 04 | 2 answers
Pre-approval good for FHA or Conventional?
Profile picture for Rick Phillips
Latest reply by Rick Phillips
July 03 | 15 answers
Bypass the Buyers Agent and Win!!!
Profile picture for user4130081
Latest reply by user4130081
July 03 | 94 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.