Status of limitations on earnest money?

[angel46]

What is the name of your state?We had a house for sale in Aug 04 (Ohio). Had signed offer & $1000.00 earnest money was placed in escrow. Day before closing, individual insisted we drop the price significantly. We refused.,Individual then contacted a insurance agent who signed a statement that house was insurable (false - same insurance company provided insurance quote) and when that failed, hired a lawyer - lawyer sent letter that house was insurable (again, false) . Our lawyer replied that individual was in breach of contract & provided proof house was insurable. Lawyer replied to effect - would we release individual from contract. Our reply: we would not agree to release of earnest money. No reply from her lawyer & house has since sold 8+ months later. Is there statue of limitations as to the earnest money?

 

[HomeGuru]

What is the name of your state?We had a house for sale in Aug 04 (Ohio). Had signed offer & $1000.00 earnest money was placed in escrow. Day before closing, individual insisted we drop the price significantly. We refused.,Individual then contacted a insurance agent who signed a statement that house was insurable (false - same insurance company provided insurance quote) and when that failed, hired a lawyer - lawyer sent letter that house was insurable (again, false) . Our lawyer replied that individual was in breach of contract & provided proof house was insurable. Lawyer replied to effect - would we release individual from contract. Our reply: we would not agree to release of earnest money. No reply from her lawyer & house has since sold 8+ months later. Is there statue of limitations as to the earnest money?

**A: what did your attorney tell you? Did he/she not advise you to file an interpleader?

 

[BradleyS]

RE Broker in Kansas:

In Kansas, earnest money can only be released due to:

1) the execution of the contract. The contract closed.
2) the buyer and seller agree on the disbursement.
3) A court order has been given to the earnest money holder (Title Company or Escrow Company)

If the earnest money does not get released with 5 years, I believe, it goes to the Recovery Fund for the Real Estate Commission.

This is what happens in Kansas......but I would bet that your state has something similar.

------

If a Buyer and Seller can't agree on how the earnest money should be disbursed, they should try MEDIATION or ARBITRATION through their REALTOR(S), if they used one.

Or,

As I have done in the past, take the BUYERs to SMALL CLAIMS COURT. Usually a COURT ORDER can force the escrow company to release the earnest money as long as the opposing party does not appeal.

Check your state's statutes on the requirements for the "release of earnest money"