Do I have the right to the deposit when buyer backed out

8 years ago

Several years ago I was selling my home. I had a couple who wanted to buy my home, we went through all steps, they put a $1,500 deposit. On signing day, I went and signed my part. They never showed. I was told many times I had to wait to get the deposit. I went back and forth for a long while waiting for the deposit, but kept getting the run around. I went through a bad divorce and forgot about the deposit. I now see it on the controllers site to claim money. The money is in both of our names, mine and the couple. Am I entitled to all of the deposit, half?

Thank you for any help.

Michellr

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Comments (8)

bry911
8 years ago
last modified: 8 years ago
It depends on the state you are in. Generally speaking, if the buyer terminates without cause or release then the seller is entitled to the full deposit, however, many states require the signatures of both parties or a court order to release the funds. So it is probably your money but you may have to appear in court to get it.

It may be worth the trouble to contact the buyers and offer some type of split in order to avoid court.
Linda Doherty
8 years ago
last modified: 8 years ago
Ask the agents involved to sign a release so you can get the money. If the agent is no longer working, go to the broker.
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still_memories
Original Author
8 years ago
Thank you both very much for the advice. I'm in CA. Not sure if that makes a difference. If it doesnt cost me more than $750 than I'd rather go to court. I tried the broker back then and they would not release the funds, I got the run around and I don't recal why. The agents couldn't do anything, I do remember however their agent was family or a close friend of theirs. This was in 2005. So it's been a while.
c9pilot
8 years ago
Yikes. We're only required (by the state) to keep records for 5 years, so if you came to my Broker, she wouldn't sign anything if she didn't have the original paperwork still.
User
8 years ago
last modified: 8 years ago
OP,

You're in CA? I'm sure the earnest money went to the Escrow Agent as one of the required steps to complete escrow

I would be in touch with the Escrow Agent and ask for a copy of the Escrow Agreement in question. I do not know about the disposition of earnest money when a home falls out of escrow. I am sure that there is either a statute covering or more likely the escrow agreement itself so specifies.

It sounds like when escrow fails to close, any unclaimed money goes to the State???
bry911
8 years ago
So typically escrow companies eventually turn the money over to the courts, relieving themselves of the legal burden of administering the edcrow. In most states I think you are beyond the statute of limitations to sue. In my opinion your best bet is to contact the original buyers and offer to split the money. Half of the money in your hand is a lot better than the hope of eventually getting it all.
User
8 years ago
last modified: 8 years ago
Why would the money be listed on the Comptroller's page? In my current state, annually the Comptroller publishes a list of un-claimed monies. California is on of those states that does not have a sit-down closing with lawyers.

Every Comptroller List of Un-Claimed property has listed the value, the name and last known address, and provides specific contact info. I would contact the Controller's Office per those instructions, if it is on the current list that certainly implies (to me, anyway) that the statute of limitations has not been reached.
still_memories
Original Author
8 years ago
Thank you, I appreciate your message. It is unclaimed money but its in my nane and the couples name so i cant claim without their signature. I don't understand it.

Do I have the right to the deposit when buyer backed out

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bry911

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Do I have the right to the deposit when buyer backed out

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bry911

Linda Doherty

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