4,583,790
For legal issues, I consult with an attorney. There are consequences to actions(or lack thereof) typically shown in a purchase agreement which vary by state/jurisdiction.
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Troy Erickson AZ Realt...
Chandler, AZ
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Ron and Alexandra Seigel
Carpinteria, CA
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Pete Xavier
Pacific Palisades, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Tony and Suzanne Marri...
Scottsdale, AZ
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Nina Hollander, Broker
Charlotte, NC
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Debe Maxwell, CRS
Charlotte, NC
1,625,153
Most of the time we try to cancel asap if they did not wire EMD in 3 days and move on to a next one. Why would you want to be stuck in a legal action instead of moving a next buyer who is ready/willing/and able?
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Troy Erickson AZ Realt...
Chandler, AZ
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Jill Murty, Realtor - ...
Laguna Niguel, CA
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Teri Pacitto
Westlake Village, CA
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Pete Xavier
Pacific Palisades, CA
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Curtis Evans
Golden Meadow, LA
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Michael Jacobs
Pasadena, CA
5,257,589
Here in NC, without consideration, you have no Contract.
I would definitely consult your attorney about this.
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Pete Xavier
Pacific Palisades, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Lyn Sims
Schaumburg, IL
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Michael Jacobs
Pasadena, CA
1,045,440
Nope. You need to serve a notice to perform.
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John Duke
Burlington, NC
4,272,934
The contract is void in my eyes...
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Lyn Sims
Schaumburg, IL
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Peter Mohylsky, Destin...
Miramar Beach, FL
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Michael Jacobs
Pasadena, CA
400,356
The contract is between buyer and seller, so no action against buyer's agent. When EMD doesn't show up within the specified period of time, issue a Notice to Perform. Unless the buyer removed all contingencies with the offer, they can cancel during the contingency period without losing their deposit, had it arrived.
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Troy Erickson AZ Realt...
Chandler, AZ
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Pete Xavier
Pacific Palisades, CA
5,772,693
I agree with Michael Jacobs
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Pete Xavier
Pacific Palisades, CA
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Michael Jacobs
Pasadena, CA
1,554,669
Nope.
You need to serve a notice to perform.
It happens with cash buyers, write better counters to lock them in!
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Pete Xavier
Pacific Palisades, CA
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Debe Maxwell, CRS
Charlotte, NC
957,092
I suspect something-At least an agent, even when new, would consult their broker and at least understand this is a legal issue and if you are an agent... need to step back as agents cannot practice law. Seller/selling agent is the same as buyers' agent. If you are somehow indeed an agent, find a new mentor and perhaps another broker.
Many great answers by the other responders.
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Raj Taj
Lake Bluff, IL
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Debe Maxwell, CRS
Charlotte, NC
2,073,099
My guess is that you're a for-sale-by-owner, and the buyer's agency is supposed to hold the earnest money.... and they never deposited it??
I'm not an attorney, so this should not be considered legal advice... but if the contract called for deposit of earnest monies, and the buyer's agent ignored those deadlines... yes, I would think you could take legal action.
btw... yes, a contract has to have "consideration" to be legal (consideration is the exchange of something valuable... like money)... but the "promise" of earnest money has been proven to be "consideration" for the purpose of contracts. Even without the actual e.m. in place.. the contract could be valid and enforceable.
Consult with a real estate attorney.
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Pete Xavier
Pacific Palisades, CA
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Lyn Sims
Schaumburg, IL
5,115,878
This needs the advice of an attorney. But without depositing emd as stated in the contract into an appropriate trust fund, that agent is in for a world of hurt. It might void the contract but I don't know for sure.
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Anthony Acosta - ALLAT...
Atlanta, GA
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Lyn Sims
Schaumburg, IL
1,506,773
Check with an attorney. In CA, I'd send a notice to perform for the EMD. Then it's the seller's call if they want to cancel. Since out here it would be 3 days in to the escrow, it could be difficult to show grounds for legal action.
Personally, sounds like the buyer is a real pip. Might be better off letting them go and finding someone else who won't cause you mountains of stress.
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Pete Xavier
Pacific Palisades, CA
3,590,291
In earnest money is not deposited within the specified contract time than the seller may issue a 3 day cancellation 'cure' and cancel the deal unless the buyers performs within the 3 days. Time for a call to that agents broker - or have your broker call the broker if agent is holding up the deal and not the buyer. Not good.
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Troy Erickson AZ Realt...
Chandler, AZ
352,976
Your question is very confusing and you definitely should discuss with a lawyer. Did the buyer agent steal the money? Your direction seems to be toward the buyer agent and not the buyer. How would this ever be a buyer getting a cash deal with zero contingencies? Again, very confusing. Your first step might also be to call the buyer agent's broker.
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Pete Xavier
Pacific Palisades, CA
1,728,667
As others have stated, without consideration (the escrow deposit), there was no valid contract.
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Debe Maxwell, CRS
Charlotte, NC
6,424,196
If I were a judge I could answer that, but since I am not I will share what I would do.
ask yourself, is is really worth it to sue your client?
Just shake it off and move on to the next deal.
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Debe Maxwell, CRS
Charlotte, NC
2,189,772
Regardless of the legal options, IMHO, if a buyer wants to void a contract you might as well let them... or it's going to turn into the transaction from you know where. I say move on!
That said, though, agents do have legal responsibilities and there can be consequences for not fulfilling them.
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Pete Xavier
Pacific Palisades, CA
2,222,275
For legal advise is best to ask an attorney.
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Anthony Acosta - ALLAT...
Atlanta, GA
1,847,621
BA can't come up with an excuse for this one. Hello board! That's not going to solve your problem though is it?
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Debe Maxwell, CRS
Charlotte, NC
3,071,489
1,157,791
Consult a lawyer in the relevant jurisdiction for legal advice.
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Anthony Acosta - ALLAT...
Atlanta, GA
1,208,441
There is no contract at this time and any legal action would be point less.
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Michael Jacobs
Pasadena, CA
5,062,995
I don't understand. I am not an attorney but if the buyer does not perform then there are consequences in the contract. Does the buyer want to back out? Talk with your broker to protect your seller.
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Michael Jacobs
Pasadena, CA
177,546
EM is not required unless it is stated in the contract. Oops. So, if the buyer did not submit the earnest money as stated in the contract, then you no longer have a contract. You void the contract and make the home available for the next prospect. You don't pursue the buyer's agent for any damages.
979,596
For those of us in Arizona, Anna Banana Kruchten, CRS answered your question.
5,879,125
2,684,769
716,891
This happened to us. Our seller, per the terms of the contract, sued on the basis of the note and won.
4,434,177
1,617,916
4,319,773
Well, the contract is invalid when that happens.
Check with the buyer's agent if the EMD is sent - and find out where it could be.
3,988,013
If the buyer's agent had the money and didn't deposit it timely he may be subject to discipline from the state real estate commission.
1,712,876
Difficult and if the seller gets in a lawsuit it can affect the ability to sell.
321,564
I believe a real estate attorney would be best to question. Follow your contract. What's it state?
991,652
5,583,328
In my neck of the woods, the listing agent's office makes the deposit of the earnest money.... or the seller's attorney....
117,135
This is not as clearcut as it would seem- Was the check just held byt he buyers agent and not deposited? How long has it been?
DId you follow up to make sure the money was depostied in a timely manner? Did you send a notice to perform when it was not done in 3 days? If it has been, say, 2 weeks, and nothing was done, and the seller not notified, I think some responsibility may lie with the listing agent as well.
Hopefully its only been 4 days and they arent depositing.- I would move ahead and find a new buyer,
902,388
Sounds like a legal issue. Buyer agent should have submitted EMD to seller's agent for broker to deposit in escrow a/c or pass on to attorney or title co to deposit. Sounds like buyer agent acted inappropriately and now you know why.
3,986,308
3,350,439
Follow the terms of the contract. In the CA contract ... we give a notice to perform. They have two days to respond. If no response - seller can cancel and bring in back up offer or go back on the market and find another buyer.
Alternatively, seek legal council.
2,785,306
5,244,268
4,800,132
1,466,257
My State will take action against the buyer's broker. All EMD's have to be deposited within five business days of contract acceptance.
7,869,927
4,905,762