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  1. #1
    eswark Guest

    Angry Seller not signing mutual release

    What is the name of your state? MI.


    The appraisal for the home we were willing to purchase was short by $7000. Hence bank did not approve our mortgage. we (myself & our real estate agent) tried to negotiate with the seller ( and his agent) to reduce the price. the seller suggested that he will not accept and hence we sent him the mutual release. The seller did not sign the mutual release.

    Kellar williams(KW), which is the brokarage company is holding $10000 earnest money deposit. KW is saying that they are not going to give us the money untill the seller signs the mutual release.

    The Purchase Agreement (PA) says that "if the buyer could not get a mortgage approved withing 30 days, the sale is void and the earnest money will be returned to buyer with the return consent from the seller or the buyer." we send the mutual release to the seller within 30 days.

    why is KW not giving me the money. It has been six months since KW is holding the money.

    thanks in advance.
    Last edited by eswark; 11-01-2004 at 10:31 AM.
  2. #2
    PghREA is offline Senior Member
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    Pittsburgh (North Hills)
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    PA. Both the buyer and seller MUST sign the mutual release in order to get the hand money back. The money is being held in a seperate escrow account which is overseen by the Real Estate Commission and KW must follow their rules. I have a buyer in a similar situation that took the sellers to court and won. The court case was 2 years ago and the buyers still do not have their hand money back because the sellers won't sign the release.
  3. #3
    eswark Guest
    thanks for the response. BTW, is there a possiblity that i can recover the Attroney expenses from the seller ?? It is not my fault and i may end up spending $1000-$2000 for the attorney.

    I contacted an attorney before and he drafter a letter and send it to the seller, which did not help either.

    Do i have any alternative other than going to court for judgement.

    thanks.
  4. #4
    PghREA is offline Senior Member
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    Pittsburgh (North Hills)
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    You can get a judgement in your favor but, if the seller still refuses to sign the release, the money WILL stay in the escrow account.
  5. #5
    eswark Guest
    Very interesting to hear that our money is locked and there is no way that the seller can be made to release the money. what about the seller ?? can he sell his house without sign a mutual release for our PA??

    So, in a mortgage transaction there is no way to protect the buyer 100% from getting his earnest money back even if the seller is trying to cheat. What does the words mean "if buyer does not get mortgage ..." in the PA?? More over, the seller is not loosing anything from his side in the transaction.

    May be i am venting but, the law is very strange.. did the seller(s) write the law books !!!!!!!!!!!!!!!!!!
  6. #6
    Ciarraine is offline Member
    Join Date
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    Quote Originally Posted by eswark
    Very interesting to hear that our money is locked and there is no way that the seller can be made to release the money. what about the seller ?? can he sell his house without sign a mutual release for our PA??

    So, in a mortgage transaction there is no way to protect the buyer 100% from getting his earnest money back even if the seller is trying to cheat. What does the words mean "if buyer does not get mortgage ..." in the PA?? More over, the seller is not loosing anything from his side in the transaction.

    May be i am venting but, the law is very strange.. did the seller(s) write the law books !!!!!!!!!!!!!!!!!!
    Your money isn't locked. If you won your case, you would probably get an order by the judge to KW to release the funds.

    You really need an attorney. Go get one.
  7. #7
    eswark Guest
    thanks for the advice. i will get one lawyer ASAP to represent me.

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