[ad_1]
Dear Monty: We are looking to buy a house, but the seller has canceled the sale. The real estate agent withholds the security deposit until the seller pays the commission. I know this is illegal, but how can I get my large deposit back?
Monty: The seller has signed two contracts in this transaction: a listing contract with the broker and a buying contract with you. The answer to your question is likely to lie in the purchase agreement between you and the homeowner.
Every state has different rules
Not knowing the location of the property is an unanswerable question for me. Every state has its own legal theories and laws. Wisconsin law is the basis for the comments below. Checking your contract for similar language regarding deposits may provide the answer.
A Wisconsin home purchase contract states: A buyer’s or seller’s legal rights to a deposit cannot be determined by the company holding the deposit. If, at least thirty (30) days prior to payment under (1), (4), or (5) above, we know that either party will not agree to payment, we will provide Buyer and Seller with an authorized mail.
“If the buyer or seller does not agree to the company’s proposed payment, a lawsuit may be filed to obtain a court order regarding the payment. We have jurisdiction over all gold disputes.
“BUYER AND SELLER SHOULD CONSIDER CONSULTING ATTORNEYS ABOUT LEGAL RIGHTS UNDER THIS OFFER IN THE EVENT OF ANY DISPUTE. I agree to indemnify the Firm from liability for the honest payment of deposits in accordance with Ministry of Service regulations.”
“(1) as directed by an attorney who reviewed the transaction and does not represent the buyer or seller; (4) as authorized within this offer; (5) any other payment required or permitted by law; .
some options
» Ask the intermediary to draft a cancellation and reciprocal release document stating that the seller will return the deposit within 10 days.
» Ask the listing broker to draft a cancellation and reciprocal release document stating that the seller will return the deposit within 10 days.
» You may have other options. Contact an attorney or find a real estate attorney to get their opinion on the best course of action.
opinion on history
It is unclear what caused the seller to withdraw. There are various reasons one or both realtors may have unknowingly contributed to that event.
My experience suggests that state legislators across the country have abandoned their legislative responsibilities to the real estate industry. Due to the asymmetric effect, legislators have created real estate commissions made up of real estate brokers.
As a result, many states’ preapproved real estate forms have been agent-friendly for decades. They now protect real estate brokers and agents from lawsuits and protect their fees.
Real estate is not alone. There are many states where other regulated industries have oversight boards. I liken this practice to the saying of the fox guarding the chicken coop.
— Richard Montgomery House Money: Insider Secrets to Save Thousands of Dollars When Buying or Selling a HomeHe advocates for industry reform and provides his readers with unbiased real estate advice. Click here to ask him questions at DearMonty.com or follow him on Twitter. @DiamontiHere is the past column. The opinions expressed are his own.
[ad_2]
Source link
