Views: 174
US
Florida
Nearby States
- Alaska
- Alabama
- Arkansas
- American Samoa
- Arizona
- California
- Colorado
- Connecticut
- Washington D.C.
- Delaware
- Florida
- Georgia
- Guam
- Hawaii
- Iowa
- Idaho
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Maryland
- Maine
- Michigan
- Minnesota
- Missouri
- Northern Mariana Islands
- Mississippi
- Montana
- North Carolina
- North Dakota
- Nebraska
- New Hampshire
- New Jersey
- New Mexico
- Nevada
- New York
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Virgin Islands
- Vermont
- Washington
- Wisconsin
- West Virginia
- Wyoming
Don't see it?

Find:
Delray Beach
Nearby Cities
Don't see it?

Find:
Neighborhood
Nearby Neighborhoods
Don't see it?

Find:

What Happens?

Real Estate Agent

Contributions: 1501

Q&A

:558
Disc

:932
Photos

:11

Zillow All-Star

Since May 2009

A buyer and seller enter into a contract and the buyer makes a good faith deposit of say $5000 with all the typical contingencies. If for a legitimate reason the buyer backs out or does not qualify, how is the $5000 returned to the buyer if the seller refuses to sign the release? Now the obvious answers are they have to or you sue them, etc, etc. The real question is why are buyer's agent's not required to advise the buyers that the release is not a unilateral option and both parties and brokers must agree in writing? There is a conflict or at least a mis-leading implication between the contract and escow handling laws in at least three states I am familiar with. Basically brokers are not permitted to release the funds back to the buyer until both parties have agreed or a higher authority has made a judgement. Again, why are buyer's not made aware of this by their agents?

Flag content

August 10 - Delray Beach

RSS

Answers (5)

Allison Ables, "Gainesville Realtor"
Contributions: 169

Allison Ables, "Gainesville Realtor"

Real Estate Agent

View my 3 listings

Contributions: 169

Q&A

:97
Disc

:9
Photos

:63

Zillow All-Star

Since August 2009

View full profile

probably because most agents don't even totally understand rules and laws governing the handling and returns of escrow monies.

Flag content

August 10

jkonstant
Contributions: 1501

jkonstant

Real Estate Agent

Contributions: 1501

Q&A

:558
Disc

:932
Photos

:11

Zillow All-Star

Since May 2009

View full profile

OK, here is a specific situation. A buyer and seller have a signed contract. The FHA appraisal is fine until underwriting gets it and revises it downward. Seller says no to lowering the price, buyer says fine I'm outta here. Broker sends the seller a release form and the seller refuses to sign, actually seller changes the amount due the buyer from $1000 to $300 to cover his costs for making repairs and buyer says no. The financing contingency could not be satisfied and contractually the seller has no rights to the deposit or any part of it. Simple so far. However, the escrow laws are specific and require both parties to agree/sign in order for the money to be released. In the mean time the buyer is feeling they are out the money and now must go to court. Why is this not clearly in writing on contracts to eliminate "some" of the problem with agents not advising their clients in advance? Buyer's need to know they may have trouble getting their money back.

Flag content

August 10

SusanHH
Contributions: 24

SusanHH

Contributions: 24

Q&A

:14
Disc

:10

View full profile

Based on replies here it would seem that they think, "you can't handle the truth."

Don't accept it. Think for yourself. There's nothing rocket surgery about any of this stuff.

Flag content

August 10

don bro, "Broker_Dave"
Contributions: 41

don bro, "Broker_Dave"

Contributions: 41

Q&A

:35
Disc

:6

View full profile

I doubt that when escow is given to an agent that agents would even think about explaining the whole process of escrow.
It is something given in good faith, if the seller does not feel that you have held up your end of the deal then the can contest it, what was the reason?

There are a lot of laws about escrow, do you want me to tell you all of them?

You might have to wait for the money but it is a good honest process in florida.

Flag content

August 10

falsedawn
Contributions: 57

falsedawn

Contributions: 57

Q&A

:30
Disc

:27

View full profile

"why are buyer's agent's not required to advise the buyers that the release is not a unilateral option and both parties and brokers must agree in writing?"
My guess would be that it may "scare off" potential buyers from making a deposit, and agents/brokers are probably more interested in making the deal happen than protecting their clients' interests.
A good reason to have an attorney on your side.

Flag content

August 10

Tools

Create an Email Alert

This alert is for the following:

How often would you like the alert emailed?

Partner Tools

Nearby States

Nearby Cities

Nearby Neighborhoods

What Happens?

Real Estate Agent

Contributions: 1501

Zillow All-Star

Main Image

Answers (5)

Real Estate Agent

Contributions: 169

Zillow All-Star

Real Estate Agent

Contributions: 1501

Zillow All-Star

Contributions: 24

Contributions: 41

Contributions: 57

Have a question? Ask it here.

Active Delray Beach Real Estate Agents

Related Questions

Question A house that is listed at 399,000 sold 3 yrs ago when the the market was much better. A fair bid?

Question What Happens?

Question short sale

Question Reduce offer on short sale with recent lower comps?

Question How do I determine what to offer on a short sale?

Related Articles about Home Buying

Guide Real Estate Buyer's Closing Costs

Guide List of Closing Costs and Fees

Guide About First-Time Home Buyer Tax Credit

Guide You've Opened Escrow

Guide Picking the Best Comps

Need a Mortgage?

Get instant mortgage quotes

Be A Good Neighbor