getting ernest money back

What is the name of your state? Michigan

Two months ago my husband an I put a bid on a house.Which we can no longer buy. Our deposit was $5000.00. Our purchase agreement clearly states that the deal was contingent on getting financing.We could not get the financing for the house.It was a new house and we requested in our commitment offer that the builder put in sprinklers and grass which he did . Now the real estate company says the builder does not want to give us our money back. We don't have enough money to buy this house and have tried to get the financing. Our realtor keeps telling us she can not release our funds until the builder signs the mutual release form. He of course is saying we owe him the money for the lawn and sprinklers and therefore will not sign. We say he will recoup his money when he does sell. The builder already put the house back on the market doesn't that mean that he voided the commitment that we had with him in the first place? Is our realtor wrongfully holding on to our money? She claims she can do nothing about it. Can he even sell his house with out first releasing our commitment? Can we put a lean on his house because we essentaily paid for the lawn and sprinklers and how do we do it? What do you suggest? thanks

[HomeGuru]

Hire an attorney to send a demand letter on your behalf.

GEO -
Read the contract carefully to make sure that you have properly notified the seller of your inability to obtain financing. Also, make sure that the seller does not have the right to obtain financing for you.

If you did not properly notify the seller and/or the seller has the right to obtain financing for you - they do not have to release your earnest money.

The earnest money needs to be released by BOTH parties - If the seller believes you are still contractually responsible to purchase the property, they are not going to just release you.

You can follow HG's advice, and/or you can wait for the seller to obtain another contract on the property. A seller cannot legally sell the same property to more than (1) party which means if they received an acceptalbe offer from somone else, they would be required to release your earnest money.