Broker/seller refused to give earnest money back (mortgage broker, lawyer)

[gallery2000]

I saw a property of $189,000 on the internet in Florida. I called the broker and he sent me the contract.

In my contract, the broker request the buyer to pay 4% commission, title insurance, and closing cost. He also requested $10,000 earnest money for this $189,000 property. I sent in the $10,000.

My loan did not go through and I don't like the terms in the contract so I would like my earnest money back. He refused to give back my earnest money because he is also the owner of that property.

Can he do that? Can the broker not disclose that he is the owner of the building at the time of the contract and since he is the owner he has the right not to give back my money?

Please help

[zphtar]

You might want to try reading this. The information as to if you can get your money back or not applies no matter which state you live in.

Earnest Money

[MiamiRob]

gallery2000 I am a realtor but you did not mention if he was a mortgage broker or a real estate broker. If he is a real estate broker he must disclose that he is the owner of the property. Also if you fail to qualify for a mortgage your escrow deposit should be returned. I don't know what type of contract you signed either. We use a standard contract that spells out all the terms that protects both the buyer & seller of a property. Escrow disputes must be reported to FREC (Florida Real Estate Commision) but again this depends if the broker is a Realtor. Hope that helps.

[Prichard]

Like the other poster mentioned, whether you are entitled to your money back or not will depend on the type of contract you signed, any changes you made to the contract, and your circumstances. There are about 4 standard types of contracts used for residential purchases in Florida.

But, you mentioned two somewhat conflicting things: 1) Your loan did not go through; 2) You didn't like the terms of the contract. Depending on your contract, there may be a provision to let you out if you could not get the loan that is referenced under the financing contingency. However, just because you didn't get the loan you wanted doesn't mean you couldn't get one that complied with what your contract states, so be careful with the way you read this.

Nothing will let you out of the contract simply because you don't like it's terms. I hate to say this, but after you sign the contract, whether you like its terms or not is too late. You better go take it to a lawyer before certain time deadlines might run. I wouldn't mess around with it yourself.