earnest money dispute

[joycee]

What is the name of your state (only U.S. law)? Texas

I’m in a tricky situation and hoping someone can advise me – I’m the Seller and we were scheduled to close on Sept 5th 2008. We finished all the repairs that were requested by the buyer as well got the house cleaned by their cleaning service. But the seller postponed the closing date to Sep 12th because of delays by the bank for the loan processing. We signed an Amendment on Sept 8th that clearly states if the Seller does not close then Earnest Money is released to Buyer.
But the Buyer had problems getting the loan and eventally their loan was not approved and they never closed. Now the title company (Land America Title) is refusing to release the earnest money until both parties mutually agree and both parties sign on the “Release of Earnest Money form”. The buyer has not signed this form. The buyer is placing a claim on the earnest money and refuses to release the earnest money.

What can I do now? I have spent a lot of money on the repairs and also lost potential buyers when I took it off the market. I don’t understand why the title company is not releasing the earnest money since we signed the amendment? What would be the best way to proceed? We live in Texas.What is the name of your state (only U.S. law)?

[Some Random Guy]

The amendment has nothing to do with it since the buyer was the one who didn't go through with the closing.

What does the original purchase agreement say in regards to the escrow money if the buyer does not follow through? Is there a financing contingency clause? Where is your real estate agent and broker in all of this?

[Texas Pooh]

If you used the standard agreement widely used in Texas, there is language in the agreement that the title company will not act as a arbitrator/mediator/decision maker with respect to the escrow if the contract doesn't close. Thus, they don't determine any disputes and only release the escrow when both parties agree to the release (the form you refer to is the standard form).

I understand that the process if frustrating.

You are going to have get a lawyer to send a demand letter to the former buyers requesting that they release the escrow.

[HomeGuru]

Originally Posted by joycee

What is the name of your state (only U.S. law)? Texas

I’m in a tricky situation and hoping someone can advise me – I’m the Seller and we were scheduled to close on Sept 5th 2008. We finished all the repairs that were requested by the buyer as well got the house cleaned by their cleaning service. But the seller postponed the closing date to Sep 12th because of delays by the bank for the loan processing. We signed an Amendment on Sept 8th that clearly states if the Seller does not close then Earnest Money is released to Buyer.
But the Buyer had problems getting the loan and eventally their loan was not approved and they never closed. Now the title company (Land America Title) is refusing to release the earnest money until both parties mutually agree and both parties sign on the “Release of Earnest Money form”. The buyer has not signed this form. The buyer is placing a claim on the earnest money and refuses to release the earnest money.

What can I do now? I have spent a lot of money on the repairs and also lost potential buyers when I took it off the market. I don’t understand why the title company is not releasing the earnest money since we signed the amendment? What would be the best way to proceed? We live in Texas.What is the name of your state (only U.S. law)?

**A: agree to release the funds.