earnest money refund?

I live in Alaska. We recently negated a contract for the purchase of a house. Seller's claim that they verbally accepted the terms and spent money on repairs, etc.,etc.

Repeated requests through the realtor for a signed addendum/ contract were met with repeated delays (more than a week passed) before we pulled the offer uncertain if there was agreement on seller's part.

Now seller's are ticked off. Realtor (buyer's agent/our agent) still holds the earnest money after nearly 2 months as the seller's won't (a) sign a recision agreement, and will not agree to arbitration which the realtor insists upon to resolve the issue (I don't know if I want arbitration either).

My position is (a) the same clause in the contract that null and voids the contract also releases us from the requirement for a recision agreement (this is actually what it says) and (b) as the contract is null and void, the realtor has no contract with us and should return the money without court proceedings?

Is this the case? and how do we get the realtor to budge and release the money instead of sitting on it?

[HomeGuru]

1. a verbal agreement for the purchase of real property is not enforceable.
2. if your broker has your money, demand it back since the broker is holding the money in a client trust account for you.
If the money was in escrow, then that is a different story and there is no obligation to return it unless both Seller and Buyer agree.

Homeguru,

Thanks for your quick reply. I might be mistaken on whether the broker holds it or it is in Escrow. If it is in escrow, regardless of the voided contract and the specific wording stating that no recision agreement is necessary in that instance, the broker is under no obligation?

How then do we get them to move on the issue?

Thanks for your help.

[HomeGuru]

1. if the money is in escrow, the broker has no rights since the escrow is a third party and the broker is not a party to the contract.

2. hire an attorney.

Thanks for your help. I was afraid you'ld say that.

[HomeGuru]

Good luck.