cancel and release

[barbfl64]

What is the name of your state? Florida
Trying to make a long story short, I am the seller and had an as is contract for my home. The buyers added a brother to the contract with an addendum a week before the closing was to take place. Of course, the closing was delayed. The lender needed various paper work over the next three weeks untill the deal was finally over. The buyer's claimed they were denied, but have never given us the denial letter. Our broker's contact at the lender said they never completed the paper work, so it wasn't denied, it was just stopped. $6000 was put in excrow. The buyers won't sign the cancel and release, and neither will we. We feel we are entitled to the money since there was a breech of contract. What steps can we take to get the money in escrow short of hiring an attorney. No one seems to know what the proceedure is. Will the money just sit in escrow indifinitely? I moved out of my house when I thought we would close and am now in another state paying rent plus my mortgage and all the house expenses. My house is still not sold, and that money would really come in handy to pay all these added expenses.

 

[Gadfly]

what does your contract say about escrow disputes?

 

[barbfl64]

The contract has a failure of performance section that says, "If the buyer fails to perform this contract within the time specified, including payments of all deposits, the deposits paid by buyer and deposits agreed to be paid, may be recovered and rtained by and for the account of seller." The problem is, how do I get this money without hiring a lawyer. The lawyer wanted $750 as a retainer, 200 per hour, so it could cost me even more. I'm already out 2 months of mortgage payments plus insurance, home owner fees, water, and electricity, and I still don't have a new buyer, so this could just keep adding up. My realtor says, just wait them out, but that's not doing anything for me now, or assuring me that eventually I will get the money. The contract says "Legally Binding" but that seems to mean nothing.

 

[Gadfly]

Isn't there a clause about mediation?

Go to the Broker. If that doesn't work go to the Florida Real Estate Commission in Orlando.

 

[barbfl64]

Do you mean my broker or theirs?

 

[barbfl64]

denial

I have now received a denial letter from the buyer's realtor. They were denied due to lack of assets. This was 3 weeks after the scheduled closing. Wouldn't they have known about this requirement all along? It seems to me like they used this to get out of the contract. Would this denial give them the escrow deposit, or does it show a failure on their part to meet the contract and give me, the seller, the escrow deposit?

 

[PghREA]

I have now received a denial letter from the buyer's realtor. They were denied due to lack of assets. This was 3 weeks after the scheduled closing. Wouldn't they have known about this requirement all along? It seems to me like they used this to get out of the contract. Would this denial give them the escrow deposit, or does it show a failure on their part to meet the contract and give me, the seller, the escrow deposit?

You will probably need to go the attorney route on this. But even if the courts decide in your favor, the buyers will still need to sign a release of escrow funds for you to get their escrow deposit. (I have a buyer who the court said should get his money back and the seller won't sign the release of escrow papers. The buyer's money has been sitting in our escrow account for 5 years!)