My realtor deposited my intitial deposit check after I voided the contract and not willing to release the money.

I'm a first time home buyer, however, things didn't go too well. I found a home and worked with a realtor who represents both sides of the buyer and seller. He first seems like very sincere and he also said he'll help me out in different aspects and watch everything for me throughtout the process since I'm a first time buyer; so, I really trusted him at the beginning.

However, at the inspection point, problems were pointed out by the inspector, but all the realtor did-was trying to persuade me not to listen to the inspector, and claiming inspectors just like to make points and how un-true of things pointed out by the inspector. This is just one of the point that I feel I wasn't being treated fairly, there are differnt issues throughtout the process that I felt the same way, but I didn't really say anything because I just want to complete the deal. As a response of the inspection, the seller was not willing to fix or compensate anything including the leaking issues. So, I decided to cancel the contract. But the realtor, instead of sending me my deposit check back as requested, he deposited it, and claimed we have breach the contract and cannot release the money to us.

I really don't understand what's his intention. I know he was angry that I didn't buy the unit as he kept insisted to me that it's the best price, and he even said he can prove it.

Any thoughts? Should I be any concern with breaching a contract and my deposit money? (The contract has an inspection contingency)

Novice,

First and foremost you should hire a real estate attorney if you haven't already.

Since I don't know all the important details of your situation and the real estate laws in New Jersey, I can't tell you what to do other than call an attorney.

I can tell you some of the rules in Illinois in regards to earnest money and agency.

Once a contract has been ratified and earnest money delivered, that money MUST BE DEPOSITED within 24 hours of receipt into a special account. Even with the cancellation of the contract the money CAN NOT be released until both parties to the contract agree to do so.

In Illinois, in the unfortunate event of a dual agency, the agent cannot represent one party to the detriment of the other. Also all of the parties must first be informed of the ramifications of a dual agency and then agree in writing to the dual agency.

I am sorry you are in this uncomfortable situation, a classic example of why I believe all parties should be represented by an exclusive agent.

Presumably the contract you signed was subject to a home inspection. Once the home inspection came back unfavorable, you had every right to void the contract.

Tell the agent and his broker that you are going to REPORT THEM BOTH TO THE REAL ESTATE COMMISSION for a fraud investigation. I predict your $1,000 will instantly become very available.

By the way, your agent was the prototypical desperate scum hustler salesman that gives this profession the bad reputation it so richly deserves.

Anything for a commission right? Bastard, hope he rots in hell.

Thanks for all the responses!

I spoke with my attorney, and he doesn't think there's any problem for us. He said we had the right to cancel the contract. So, I'm not too worry now. The realtor just want to keep us in the deal.

However, there are different situations that I feel I wasn't treated fairly, and I believe I should report it to the right agency. Any suggestions of where are some proper places in addition to "navarac" bought up of the Real Estae Commission and what I should do?

- I was requested to bring along my credit report and credit score to him on the day we sign the contract. After reviewing them, the realtor said since I have really good credit score, he'll send a copy of he credit score to show the seller. Is this a common procedure?

- Next few days, I started the mortgage application with the mortgage broker which is his friend's place, he said they provide me a better rate. However, along the way, I was able to find lower rate some where else, but when I told him, he responded that it's impossible, the other place won't get it done on time, and they might not give you the same rate at the end. He was also accusing me that I was ruining his friendship with the broker if I do that and they were not charging me for the process because of him. And when I requested the mortgage broker to withdraw my application, they said they will just continue the application and they actually went on and applying for more financing options through different banks. And then, way after we terminated the contract thru the lawyer, my realtor instructed the mortgage broker place to continue my application without informing me, but the mortgage broker had to contact me for one additional information and that's how I know.

- When it came to time for inspection, the realtor actually scheduled an appointment with an inspector with his choice and inform me that he already scheduled something for a weekday during day time and afterward asked don't know if I'll be able to make it and he knew I have a regular full time hour job. But I firmly stated that I would like to use the inspector that my friend referred me to, so he did cancel the appointment.

- As the result of the inspection, the inspector had picked up a list of items, as we went over with our attorney, we only picked out the major problems. I was told by the realtor when I look at the property at the beginning that I don't have to concern about technical issues as they will pick up during the inspection stage as the normal process, and the seller will fix the functional problems but nothing cosmetic. However, the realtor was trying to disagree with the inspection report to me over the phone, such as, he claims no one can say the HVAC unit is not working because you can turn it on and you may only say it's not efficient, as oppose to inspector stated the heat pump is not working properly and not producing heat as it should be and it's over its' service life span (it's now about 30 yrs old), and the bottons don't work either. We also requested the seller to fix the windows as they don't open properly, when the inspector tested it, I saw the window tilted to one side and were hard to operate. The realtor responded that the inspector didn't know how to operate the windows but he was having a hard time himself too. With the leakage problem of the sink pipe that's currently wrap around with a towel, he said it's only $5 to fix. I don't know if these would just considered as his opinion, but he did stated to me that it is up to the seller of how they wanted to fix the issues and we don't have the right to demand any license person to perform any work. So I verified with the lawyer that it's not true of what he said, so I feel the realtor is trying to mislead me by giving me false advice.


My co-worker suggested me that I should report to his upper management so that I can get my money back, cause I may have to pay fees if it goes to a court to handle. Should I do that or should I handle it thru the lawyer. That's a big company but I'm very unfamiliar how they structure, do they have a boss anyway?

Two things first that action in and of itself it illegal so two wrongs do not make it right. And second you are not in the transaction nor have you asked any pertinent questions to claim fraud. It’s really an embarrassment of this profession for an agent to recommend to anyone that another agent be brought up on fraud charges without at the very minimum obtaining all the facts and asking pertinent questions. No wondow why the reputation of this profession has taken a hit with the public.

Now on to RE Novice
First a few questions did you sign any type of agency agreement. And if so what type. That would dictate to us whether the agent acted improper. For example did you sign anything to the fact that the listing agent did not represent you but represented the seller? And in fact I do not know the laws of you state but I know some in some states the listing agent automatically represents the seller and not you. If either one of those is true, then you really do not have any complaint here for the agent was acting in the best interests of the seller, his proper client. And you went through all this without representation. Now you do because you went and hired an attorney. If you signed any time of either transaction and or dual agency then there could be some serious violations here. So again did you sign and or agree to any type of agency relationship and or non agency relationship.
If the listing agent represented the seller and not you then yes he could ask and then it would be up to you to provide. I can not speak for any other agent. However if you was represented by me then no I would not have recommend that. We would have gone to your lender and gotten what is called a pre-quail letter. It’s basically a letter from a lender that says after review of your assets and liabilities this lender is comfortable that you can complete a loan. Notice we are not giving up any private information like actual credit scores.

That depends on the actual contract you used. In in most cases that is true the seller does not fix cosmetic items.

Oh not true at all. And it’s not the agents call either on that one. The A/C is either working in the manner of witch it was indented or its not. And that is why you hire an A/C inspector. Now as to what can be done and or what the seller is responsible for, that goes back to what is in your contract. That you may want to ask you attorney about for I have no idea what’s in it and or how it’s written.

Again its not the agents call, nor is it the sellers at this point. Its what is in the contract. And if you had your lawyer looked over the contract and says its not true then who better to tell us what is in a contract or not but a lawyer.

The size of the company or structure has nothing to do with it and nor does not matter. The structure of the company only comes into play with as it regards to the escrow check may have to come from different location and would have to be mailed. And I would bold my recomendations handle everything thru your lawyer

The realtor actually represents both the seller and the buyer. I signed an agreement with that fact and he's a dual agent, and so he is representing my side too.

I did provided a pre-approval letter to the realtor at the time when I sign the contract. When he said he'll send the credit score to the seller, I actually did asked him if the credit score sheet contains any confidential information that we shouldn't be sending it, and only pointed out the social security number but is on the contract itself anyway, so he said I shouldn't be any concern.

If thats so then if what you are telling me is correct then the agent is dead wrong. And then speak to your attorney and do all of us good ethical agents a favor and take him out of the bussiness. If you signed a dual agency agreement and what you are telling us is true then I would be joining navarac and say

Talk to your attorney about breach of fiduciary duties and make a complaint with your state real estate commission. Their sole purpose is to protect the general public.

Blech.
I am so sorry you got caught up with such a slimy character. Has your lawyer called this agent's broker yet? Are you still retaining the services of the lawyer? You can call the broker directly and explain the situation.
After you get the earnest money back I think you should call the local Association of REALTORS and file an ethics complaint.
This is not legal advice and I am not a lawyer, but in my humble opinion I would think court action won't be necessary. But I'm not a lawyer.
--A

File a complaint yes. However the local Association of Realtors is a private membership for Realtors. That is not what the local Association of Realtors is for, nor ould it do any good. With her problem the State Real Estate Commission is the proper place. In fact the States Real Estate Commission main job is to protect the public from rotten real estate agents. Plus this agent may not even be a member of the local real estate assoication.

I really appreciate all the opinions!!

I'm actually a little confused with some terms. What do you mean by "broker" as mentioned that I could try to contact his broker? His business card has the realtor logo, is that mean a license given by NAR? Actually is NAR a government agency or non-profit organization? Should I also address the issue to them too?

I'll be meeting with my lawyer again some time soon, so I can discuss further with him, mainly focus on trying to get the $ back. Does this happen often that the earnest money doesn't get released, so what are the common ways that these things usually gets resolved?

I wasn't really sure at first that if what he did is just not nice but then it's not really against any ethical issues as being a realtor. But after seeing the opinions, I feel I'm not wrong. I actually started drafting my complaint letter today.

Actually, one more question, does it sound right that he actually said in an email that goes to both me & the seller that the property is offered in the best price & he can prove it? I feel like he's speaking more on the seller's side or that doesn't sound like the case?

Thanks again!

Agent have there license with a broker. There is a lot more to it and it’s a little different. However the easiest way for you to look at it is to think of the broker as your agent’s boss.
NAR is the National Association of Realtors and is a private membership for agents. And actually the term Realtor is copyrighted by NAR and all that really means is the user is a member of NAR. It really does not even mean they are agent’s only that they are members. And no they are not the ones to go to. As they are for realtor to realtor. Your State Real Estate Commission is set up to handle complaints from the general public and is in position if the crime warrants fining and revoking his license. Also they are the ones that if the crime warrants may go after the agent and his broker in court.

Does it happen often, no not really but it does. Usually we just talk it out and the buyer and seller signs an escrow release and we move on. Although sometimes we do have to get the legaleeze people involved.
Nothing really wrong with that. The question really is, are you willing to accept that price. If yes then you may want to consider that. If no then proceed on your present course with your attorney.

Look on all of your paperwork, disclosures, and contracts and the broker's name should be there somewhere. For instance, in Nevada it is both in the sales contract and in a Duties Owed disclosure explaining who is the agent and who is the broker. (as explained in another post, for lack of a better explanation, the broker is like the boss.) Or you could look on your agent's business card for the office number and ask who the broker of the office is.

--A

I cancelled a contract when seller Would Not agree to make workman like repairs to requested items in buyers inspection sellers response I cancelled contract sellers would not release my earnest money and have since sold property in question. How & When can I get earnest money deposit released?

Firehouse,
Contact a Real Estate Attorney.

One more thought here in Florida its not a question of right or wrong it takes an approval by both buyer and seller to release escrow. A question is it the broker and or seller refusing???????

I have removed this post because something happened to make me parnaoid again.. :rolleyes: but I would like to warn people everywhere not to trust people in power, just because they are in power.

If Mr. Novice happens to live in a place where entities such as the Real Estate Commission are honest professioanals, then it can't hurt to try them.

I was probably just envious to think that such a place might exist.

The easiest way to resolve a problem like this is contacting the real estate agent's broker. Usually the broker will tell you how the situation can be remedied and it will only take two minutes of your time to contact them. Sometimes money isn't released because of requirements (such as buyer and seller stating the contract is null and void). I bet most of these cases where money isn't returned is because of misunderstandings between agents and buyers and for some reason the agent doesn't explain the situation properly to their buyer.