Real estate question from Arizona

[azmom]

My seller agent found me a cash buyer who put in 5,000 earnest money with a two week close. inspection period ended yesterday, all went well, only a few minor repairs. Last night, my agent called and told me that the earnest money deposit had been placed on hold. Apparently the cash buyer has no cash and cannot close on time. Buyer is inheriting money and there is a hold on it. Agent never said anything about this to me. I had packed, and paid an application fee for a rental. The stress has been unbelievable. Can I make a demand to make my agent pay for some of the distress.

[OffWithTheirHeads]

1. You need a real estate lawyer, not an opinion from DU

I owned a brokerage in Ca. Don't know Az law but it sounds like you have a breech of contract that could be actionable.

[azmom]

2. Don't want to pay for an attorney if

I don't have a case. Trying to find out anything I can before spending additional monies.
Thanks.

[OffWithTheirHeads]

3. Most lawers don't charge for a consult.

[azmom]

4. I'll make some calls. Thank you.

[azmom]

12. I have an appointment tomorrow

For a free consult. Thanks you

[Person 2713]

5. Don't you get to keep the earnest money? You took the real estae off the market

based on a contract promising to buy by mortgage or cash due at a certain date and secured by earnest money. Talk and signatures are cheap that is why earnest $$$ are usually in escrow and contracts state " time is of the essence as there needs to be a term date
I assume you get the escrow unless you what want additional$$ for extending your term date and the intent of buyer is only to add additional time for closing but still planning to purchase the real estate
That happens usually without comp but you could say no but why?

[azmom]

8. There is no earnest money to get because the

Check bounced. I'm not sure why it took so long to find out that the funds were not there. It was to be a cash deal with a two week escrow. Escrow is due to close on the 14th. My house is in total chaos, and just thinking about unpacking everything and re-hanging pictures and decorations is stressing me out. I'm not a healthy person, and it was very hard for me to do all the packing. I'm dreading having to unpack and getting the house show ready again.

[Mosby]

6. How was the earnest money put on hold?

Did they write a bad check? If he can't make closing the money is yours.

You need to tell your realtor to explain this to you and probably pull out of the sale.

[azmom]

7. Yes, they wrote a bad check, and I'm not sure

Why I'm finally being told about it. We accepted the offer, May 1st. Closing was to be on May 14th. On Sunday, May 10th, I was informed that the check bounced. Most of my stuff is already packed. Luckily, I haven't paid any rental money for my new place. I'm not sure if my real estate agent screwed up with the earnest money. Since the check bounced, there is no money for me to claim.

[Mosby]

9. tell your realtor and the escrow company your calling the police

and do it, writing a bad check that big is a felony. Also tell them that they need to make good on the five grand, it's your money.

At the very least it will wake them up and they will stop playing games, police reports have a way of doing that.

[Person 2713]

10. Did you have a lawyer set up for closing ? You also signed a contact with the real estate agent

Yes the house was taken off the market creating a loss via a fraudulent contract and you need to go after the buyer and possibly incompetent realtor too ;
4 days notice on default , no money in escrow etc & who will pay for added expenses if you've closed off taxes and utilities in your name already ??time and money was lost besides being off market.
Fraud is fraud and it is a crime
I am sorry to hear of the experience & wish you peaceful times ahead

[azmom]

11. Thank you for your comments.

I cannot say for sure, but I suspect my agent knew that the funds were not there when he accepted her check.