Return my Earnest Money!

What is the name of your state? TX

I was involved with offer on 2 pieces of investment property, owned by the same seller. After inspections revealed too many issues with the property, I cancelled on one of the units and forwarded a document for the "return of ernest money." I moved forward with the second transaction. After the inspection of the second property, there were also a significant number of difficiencies, but instead of cancelling, I tried to negotiate for credits on repairs that I would do. I got nothing. Finally I decided to go ahead with the purchase, only to find out that days before closing several things happened: #1 The seller called me directly to give me h"head's up" that the property had an electrical fire only days before the inspection, information that he never disclosed prior to this. #2 My agent later contacted me to inform me that the seller never signed the final contract, hence it was never executed and now he wanted to increase the price.

Of course, I was livid and immediately cancelled the deal, because -after all there was no executed contract. So I sent a cancellation and "return ot money" for the second property directly to the selling agent and re-sent the same documents for the first property.

So my question is, who is at fault here and what recourse do I have? #1 Is it MY AGENT for not ensuring that we had a signed contract. I asked for the executed contract several times and never got one becasue the selling agent never did. #2 Is it the selling agent for not acting with due dilligence and not returning any of the documents in a timely matter. #3 Is it the seller for not fully disclosing the condition of the property and then contacting me directly and rubbing my nose in the fact that he got away with it? Please advise and maybe give me the name of a good lawyer!

The final result is that I have been in contact with the title company directly to get my money returned becasue no one else seems to be doing their job!

[HomeGuru]

Originally posted by zaryamac
What is the name of your state? TX

I was involved with offer on 2 pieces of investment property, owned by the same seller. After inspections revealed too many issues with the property, I cancelled on one of the units and forwarded a document for the "return of ernest money." I moved forward with the second transaction. After the inspection of the second property, there were also a significant number of difficiencies, but instead of cancelling, I tried to negotiate for credits on repairs that I would do. I got nothing. Finally I decided to go ahead with the purchase, only to find out that days before closing several things happened: #1 The seller called me directly to give me h"head's up" that the property had an electrical fire only days before the inspection, information that he never disclosed prior to this. #2 My agent later contacted me to inform me that the seller never signed the final contract, hence it was never executed and now he wanted to increase the price.

Of course, I was livid and immediately cancelled the deal, because -after all there was no executed contract. So I sent a cancellation and "return ot money" for the second property directly to the selling agent and re-sent the same documents for the first property.

So my question is, who is at fault here and what recourse do I have? #1 Is it MY AGENT for not ensuring that we had a signed contract. I asked for the executed contract several times and never got one becasue the selling agent never did.

**A: your agent is at fault.
*******

#2 Is it the selling agent for not acting with due dilligence and not returning any of the documents in a timely matter.

**A: that agent is at fault.
*******
#3 Is it the seller for not fully disclosing the condition of the property and then contacting me directly and rubbing my nose in the fact that he got away with it?


**A: the Seller is at fault.
*****
Please advise and maybe give me the name of a good lawyer!

**A: [url]www.attorneypages.com[/url]
********

The final result is that I have been in contact with the title company directly to get my money returned becasue no one else seems to be doing their job!

**A: ok, so did you get your money back ye?

Yikes! Yeah I figured as much. Fortunatley I got out of it with my skin still on. Did I get my money back? Not yet....most of this has happened within the past few days because I got tired of waiting. After talking with the title company representative, I am semi-confident that I will get my money....although I will be on them like "white-on-rice!"

In the mean time is their some legal action that I might take because of thie "poor practices?" These transactions were being done as part of a 1031 exchange and now I will be liable for capital gains on the portion of funds that remain unused. Can we make somone pay damadges for this?

Thanks......

[HomeGuru]

Originally posted by zaryamac
Yikes! Yeah I figured as much. Fortunatley I got out of it with my skin still on. Did I get my money back? Not yet....most of this has happened within the past few days because I got tired of waiting. After talking with the title company representative, I am semi-confident that I will get my money....although I will be on them like "white-on-rice!"

In the mean time is their some legal action that I might take because of thie "poor practices?" These transactions were being done as part of a 1031 exchange and now I will be liable for capital gains on the portion of funds that remain unused. Can we make somone pay damadges for this?

Thanks......

**A: uou need an attorney to review your contracts. Hopefully there was an added contingency for damages based on if the 1031 exchange did not close.