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Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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Fl law.. My seller wants to keep deposit $2500. Buyer will

Customer Question

Fl law.. My seller wants to keep deposit $2500. Buyer will not sign cancellation and release letter. Lender defaulted on the loan but we have letter from lender (private money lender) saying they could close the deal. Lots of emails from the buyers agents saying we would close on this day or that. We are not out of contract (all extentions..there were several.
I am a lic agent in FL
Submitted: 10 months ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 10 months ago.

Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help with your question and concern

Customer: replied 10 months ago.
thank you
Expert:  RealEstateAnswer replied 10 months ago.

Why will the buyer not sign? Can you please clarify exactly what happened? The seller would want to keep the deposit if the buyer defaulted,

Customer: replied 10 months ago.
The buyer feels that they are entitled to the deposit because we sent the cancellation letter.
contract dated 7-8
close 8-12 (we agreed to close verbally on 8-15
Lender said he needed more time as it was a hard money lender. after weeks the Lender said the person with $ backed out but he was going to fund it himself but needed a few things signed. He then gave us a deadline and kept changing the deadline. He promised the buyer (he talked to her he would close a couple of weeks ago and gave her the date. He also wrote a letter (I have copy of that) to the new home community where the seller was going to buy telling them he needed a bit more time but would close that week. after all of this he is not closing.
Customer: replied 10 months ago.
my seller is ready to move on and wants the $2500 but the buyer will not sign. I just need to know what I as her agent needs to do to get her the $.
Expert:  RealEstateAnswer replied 10 months ago.

Thank you. The truth of the matter is that if there is a dispute and this can not be resolved between the parties, the money will be held in escrow and not released. At that time, the burden would be on one of the parties to take legal action, to get the money which they feel they are entitled to. In this case, the buyer either sues for the release and their deposit back or the seller sues for damages, under the contract, since they failed to close. You, as the realtor, can not get the money released unless all parties agree and it would be at this time, that your client needs to take action and this needs to be litigated.

Customer: replied 10 months ago.
we are going to have to pay for an attorney?
Expert:  RealEstateAnswer replied 10 months ago.

Your client will, if the buyer will not sign the release and give them the deposit. The money will not only sit in escrow but they may not be able to relist the property until this is resolved.

Customer: replied 10 months ago.
Why would we not be able to relist if we do not have a contract any longer?
Expert:  RealEstateAnswer replied 10 months ago.

Because if there is a dispute with the property and the buyer still wants to proceed and the seller refuses, then there could be a pending lawsuit against the property and another party is not likely going to want to get involved with a home that is subject to a lawsuit. You should review any contract which is presented with a new offer, made by a new buyer and make sure it does not ask your seller to disclose any possible pending litigation. The buyer may sue for specific performance and ask for a forced sale of the home. I am sharing with you the obligations which you may have and should look into, when representing your customer and going forward, with a pending dispute.

Expert:  RealEstateAnswer replied 10 months ago.

Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service at the top of this page, before exiting the site, so I can receive credit for my help. I hope you found it to be 5 STARS! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.

Expert:  RealEstateAnswer replied 10 months ago.

I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!

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