My agent failed to obtain Earnest deposit and I found out only at close of escrow.?

Question

Has agent been negligent ? Can I explore the two options againsts buyer below because housing market has deteriorate since February 07?

#1 Sue for specific performance: There is a legal right for the seller to file suit against the buyer, asking the Judge to order that the buyer actually go to closing. This is known as an action for specific performance. Legal actions take time and are expensive. But if the buyer is financially able – and for example if the property values has declined – this is a possible alternative for the seller to consinder.

or
#2 Bring a lawsuit for damages: Let us assume that the sales contract called for a $500,000 purchase price. After the buyer defaulted, the seller was only able to sell the property for $400,000. The seller has the right to file a lawsuit against the buyer for this $100,000 loss. Damages would also include any carrying costs which the seller had to absorb until the property was in fact sold to someone else.

Answer 1

By failing to obtain EMD your agent has broken the law, contact the RE commission in your state. Option 1 is a viable option HOWEVER you essentially cloud your own title and are unable to sell the home during the whole process as you are basically saying the house should belong to the buyer. So that is something to think about.

Answer 2

You really don't have a contract without ernest or option money to constitute offer and acceptence. Ask your agent how they plan to "fix this"? The buyers can claim, if they did not have an agent that they didn't know about the ernest money. This all falls back on your agent. First, I'd contact his or her broker & let the broker know. Then a question that will make any broker/agent stand at attention,"do you have E&O coverage?"(Errors&Omissions)

As a professional "Full Time Agent", it steams me to read this kind of stuff. That was all covered in Contracts for lic. exam. If you can't get a resolution from the agent or broker,contact your state real estate commission & make a complaint. I'm sick of unprofessional agents making my job harder that it has to be. Good Luck.

Answer 3

The agent that represented you is responsible as well as his broker. The earnest money is to be deposited into an escrow account. Since your agent was well aware of this fact he and his broker are responsible for their actions. You may take them both individually to court and complain to the Board of Realtors about their business morals and ethics. They have E & O insurance for that reason, but this is not usually covered as well as they might assume it to be.



The buyer may have given a earnest money deposit and told it was given to the seller as well. Buyer is not legally responsible that I'm aware of.



I'm wondering why the Escrow officer did not catch the fact that there was no earnest money given as they are the ones who generally put it into the escrow account.



Please check you HUD-1 statement.



I am not a lawyer or trying to gie legal advice but I have been in the real estate field for 16 years and have worked with agents who have tried to do the same to their clients but I turned them in for it.



Its emotional enough when your dealing with such a big asset and to know after the fact is truly unbelievebly stupid of a someone who claims to uphold the real estate law.



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Answer 4

no longer likely, easily!! that is an absolute violation to withhold Earnest money deposit from escrow if no longer deposited in a "useful volume of time (you extra perfect have a stable reason notwithstanding if that is previous a million enterprise day). They shopper has each ultimate to cancel the deal interior the inspection time-physique notwithstanding, the agent has no ultimate to withhold money. in case you sense the agent acted egregiously against you and you desire to document a complaint with the dep. of actual assets than by using all skill accomplish that. it is your only recourse. stable success

Answer 5

Laws a different in each state, so call your local board of realtors and talk to them. Did your agent also represent the buyers? If not it was the buyers agent that was negligent. In Utah, we (agents) have to sign the contact when we have received the earnest money. If they said they received the money when they didn't you need to report it to the board of realtors.