Real Estate Law
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So did the buyer get the extra $5K since the repairs were not completed?
Did the title company actually hold back $5K out of the closing proceeds to ensure the work got done?
Ok, that is a little unusual and I am not sure why the listing agent substituted a personal check in this situation or why the buyer would accept it..
But if the listing agent cancelled the check, then the buyer would have legal grounds to come after both them and the seller for breach of contract if they never actually got the $5,000 that they were entitled to.
This is something that could be reported to the state Real Estate Board as it is likely an ethical violation and a legal one for a personal check to be used instead of escrowing out funds from the closing proceeds to hold back until repairs were completed.
AZ Dept of Real Estate
I agree completely and would suggest that the buyer file suit against seller for breach of contract as well as filing a formal complaint with the AZ Dept using the link above..