We are strugling to get our earnest money refund (sales, real estate)

[sarour]

We are family of three we have decided to buy a house as the prices was down and the Market was promoting, we put an offer on 3 levels THS in centreville owned by a bank x it was a great deal , 308 with no closing, everything was perfect until my husband heard rumor that will be some layoff in the company , after long reflection we have decided to back out and beleive me this was very hard decision , we talked to agent who was really very good , she is still working with us to get our money back even if she wasted her time and she didn't get any penny from us , anyway she wrote a cancellation based on , we didn't receive the HOA documentation , by the way the assistant of the seller agent has refused to give us the HOA documentation .
after we canceled the contract it was on December 26Th , our agent talk to the seller agent to ask for the refund he was so rude with her saying that the bank is so angry and they dint want to give us our money back i mean $ 2000 I dint know if this is legal, Because the our agent said we cant sue them because its AS IS condition House.

Please can anybody tell us what to do ?

[athousandlogins]

Well, it depends on the specific contract that you signed. A real estate lawyer would be best able to decipher that contract for you and tell you if you have any options.

That said, since the property is bank-owned, the contract was probably not written with much leeway for you. That is the tradeoff for getting a less expensive piece of property; you tend to be at the bank's mercy until the last minute.

[ChristineVA]

Sellers take earnest money deposits seriously, for a reason. The whole time that you had agreed to buy the house, it was off the market for other potential buyers. This equates to a loss of potential sales to the seller. This earnest money is their insurance that you will go through with the sale and, if not, the money provides them with the shortfall that you created.

There are often good reasons to get your money back. True loss of job would be one of them--that is out of your control. Whispers and rumours at your company are not a good reason. Heck, that kind of talk can go on for months to years. I mean, really, next month your husband's company could say "Oh well, we didn't mean it, things are looking good" and you would be back out in the market again.

[oneasterisk]

I'd definitely talk to a real estate attorney. If the contract says they have x amount of days to get you the HOA paperwork and they didn't, then they have defaulted on the contract. I don't have my contract in front of me now, but I do recall it reading that I can walk away from the contract if I have not received the HOA paperwork. It had different stipulations if I received through email, fax or in person.

[Margery]

You should have a copy of the Virginia Jurisdictional Addendum to the contract, in paragraph 8 it address the specific situations for delivery or notice that a HOA packet is not available. As far as contacting an attorney, ask your agent to get her broker involved to speak with the other agent's broker. Too often much time is wasted by agents venting their anger and egos, the broker has the legal responsibility for the agents' actions and will cut to the chase. The broker holds the earnest money deposit until settlement, not the bank, unless otherwise agreed to in the contract. The broker releases the deposit after all parties are in agreement as to its disposition. If the parties cannot agree as to where the money should go, the broker can give them 30 days notice of the broker's decision as to the disposition or can turn it over to the courts to decide. Sit down and read your contract in its entirety, don't take anyone's word for what it says. I always give my clients a blank contract when we first meet and tell them "this is your homework and there will be a quiz".

[VRE332]

Originally Posted by Margery

You should have a copy of the Virginia Jurisdictional Addendum to the contract, in paragraph 8 it address the specific situations for delivery or notice that a HOA packet is not available. As far as contacting an attorney, ask your agent to get her broker involved to speak with the other agent's broker. Too often much time is wasted by agents venting their anger and egos, the broker has the legal responsibility for the agents' actions and will cut to the chase. The broker holds the earnest money deposit until settlement, not the bank, unless otherwise agreed to in the contract. The broker releases the deposit after all parties are in agreement as to its disposition. If the parties cannot agree as to where the money should go, the broker can give them 30 days notice of the broker's decision as to the disposition or can turn it over to the courts to decide. Sit down and read your contract in its entirety, don't take anyone's word for what it says. I always give my clients a blank contract when we first meet and tell them "this is your homework and there will be a quiz".

Gosh you know your stuff....

[car54]

I think you should lose your deposit. That's the whole idea of "earnest" money....to show you're serious about buying the house.

That seller may have missed a serious buyer while holding the house for you.

That said, I've always refunded deposits to my buyers that backed out....it's just not worth the hassle.

[jimifaze]

I would just sue them no matter what. Dont listen to your real estate agent. It is you who needs to protect your rights. Get advice from your agent but do what you should do. If you believe by your contract you have the right to get your earnest money back, then sue them in the small claims court. 5000 or less amounts you dont need an attorney. Go there and defend yourself. You cannot waste your hard earned 2000 dollar for crooks that think they can make money for free. It is a tactic for them to close on the house. I had the same situation and my contract was on my side. I sued them and got the money. denodavid@hotmail.com
good luck and please dont give up.

[Guamanians]

Originally Posted by jimifaze

I would just sue them no matter what. Dont listen to your real estate agent. It is you who needs to protect your rights. Get advice from your agent but do what you should do. If you believe by your contract you have the right to get your earnest money back, then sue them in the small claims court. 5000 or less amounts you dont need an attorney. Go there and defend yourself. You cannot waste your hard earned 2000 dollar for crooks that think they can make money for free. It is a tactic for them to close on the house. I had the same situation and my contract was on my side. I sued them and got the money. denodavid@hotmail.com
good luck and please dont give up.

Great advice! Another possiblility is to threaten to sue, or to take it to the media. Banks & real estate companies will do almost anything to avoid bad publicity. But, a lawsuit might be the most direct method that will actually work... Good luck!

[Jlyles]

Awesome, thanks Margery for putting it so well!


quote=Margery;7574339]You should have a copy of the Virginia Jurisdictional Addendum to the contract, in paragraph 8 it address the specific situations for delivery or notice that a HOA packet is not available. As far as contacting an attorney, ask your agent to get her broker involved to speak with the other agent's broker. Too often much time is wasted by agents venting their anger and egos, the broker has the legal responsibility for the agents' actions and will cut to the chase. The broker holds the earnest money deposit until settlement, not the bank, unless otherwise agreed to in the contract. The broker releases the deposit after all parties are in agreement as to its disposition. If the parties cannot agree as to where the money should go, the broker can give them 30 days notice of the broker's decision as to the disposition or can turn it over to the courts to decide. Sit down and read your contract in its entirety, don't take anyone's word for what it says. I always give my clients a blank contract when we first meet and tell them "this is your homework and there will be a quiz".[/quote]