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Buyer breach of contract. Didn't come through with the full amount of earnest money by the date stated in P&S. I did my part, gave my tenant notice and they have found a new place so I will lose $1,200. a month and it is very unlikely I will find a new tenant who will agree to move into a house that is for sale. Because of my loss, should I demand to keep the $3,000. earnest money? Opinions?
I am not an agent or a r/e lawyer, but I would need more info - are they backing out of the deal or are they just late on getting you earnest money (for example, are they out of town buyers and the check has not gotten to the broker yet?) I think it is an awful situation for you to be in with having your tenants ready to vacate based on this offer - is the offer "dead" - whoever is holding the earnest money should be able to give you more info on your rights to the earnest money.
I am not an agent or a r/e lawyer, but I would need more info - are they backing out of the deal or are they just late on getting you earnest money (for example, are they out of town buyers and the check has not gotten to the broker yet?) I think it is an awful situation for you to be in with having your tenants ready to vacate based on this offer - is the offer "dead" - whoever is holding the earnest money should be able to give you more info on your rights to the earnest money.
The check has been in the mail everyday. I have been getting nothing but the run around and have had problems with the Buyer's agent from day one. Even my lawyer said they obviously aren't serious. Here is the agents's email from the day before earnest money was due.
"You signed on the 14th of April, I am very aware of the dates."
I went to the realtors office today and she said she had the earnest money yesterday (the day it was due) but didn't bother to bring it to the attorney. Yet she still didn't offer it to me or say she was sorry or say that she would bring it right over to his office immediately. I can only guess her lack of interest must mean maybe they are working another deal???
Angel, if the property affected is yours - then you should keep the funds.
If you lost a tenant due to a signed purchase agreement and have an empty building - then you rightfully may keep and should keep the earnest money.
I would take caution if the property belongs to a third party. If this is the case, then I would leave it up to the property owner to decide wether or not to proceed with any actions.
good luck!
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Angel, if the property affected is yours - then you should keep the funds.
If you lost a tenant due to a signed purchase agreement and have an empty building - then you rightfully may keep and should keep the earnest money.
I would take caution if the property belongs to a third party. If this is the case, then I would leave it up to the property owner to decide wether or not to proceed with any actions.
Wow, I am surprised you feel I should keep it. I though people here would feel bad for the buyer. I was leaning more toward giving it back. I hope more people comment. Thank you. Oh and I am the owner.
Frozen whether or not you keep it depends on what your contact says you can do. It would be a no brainer to me that if the buyer breeches the contract you keep the earnest money.
That's kinda the point of earnest money. Out here the earnest money is the liquidated damages for the seller and they agree that is their sole remedy in our contracts.
It would be a no brainer to me that if the buyer breeches the contract you keep the earnest money.
That's kinda the point of earnest money.
That's exactly what I was thinking .... but I honestly feel bad for the Buyer because I am not sure if the Buyer knows all the crap I've been dealing with from the agent. I guess I just feel bad but on the other hand, if I go months without income coming in on the property because the house doesn't sell, I'll be feeling bad for me. This is the second time this has happened to me which is why I insisted on a larger deposit. Last time I only kept 1/2 $1,500 but that didn't go far when my house was empty for 4 months. Our contract says we have to both sign to release the money or else it goes to arbitration.
I went to the realtors office today and she said she had the earnest money yesterday (the day it was due) but didn't bother to bring it to the attorney. Yet she still didn't offer it to me
Ok...first off, she CAN'T give it to you. It has to go into escrow with your attorney (I believe you said it was your attorney holding escrow) and she has an obligation to get it there, not to you. Also, she has a certain amount of time to deposit the funds. Here in Florida, it's 1 day for the agent to get it to the broker and then 3 days for the broker to get it to the escrow agent, with holidays and weekends excluded. Have you or your attorney spoken with the broker of the agency? If the buyer did actually get her the funds, they aren't in default and her agency is liable for it.
You have an attorney handling this. What is he saying you should do?
In my state, the property cannot be put back on the market until the escrow monies are resolved.
Unfortunately, you do not get to decide if you can keep the earnest monies, or not. Your contract will govern that. Only your attorney can determine if you have an enforcable contract, under your state laws.
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Here is my .02cents
