Quote:
Originally Posted by frayedends
The seller decides if they will issue a refund based on the contract, not the real estate agent. The agent should be presenting a release to the seller to sign and release the funds. If the seller says they won’t sign, the agent can’t do much.
If this was an irrigation line leaking underground it could cause this problem and be an easy fix. Of course, carpet and even compromised concrete could need replacing.
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Not exactly. First of all, the escrow company determines if the buyer has breached the contract, which is the only time the earnest money can be forfeited. Second, the broker legally represents the seller via the listing contract. In many listing contracts, the broker is entitled to half of any forfeited earnest money. In some states (not in Florida), you actually need a court order to have earnest money forfeited. The reason earnest money would ever be forfeited would be to cover any losses the seller incurs. So, even if the money is forfeited, the buyer can seek a refund unless the seller can prove that they lost money, such as actually selling the house for a lower price.
But, as a practicable matter, I believe that, if an attorney demanded that the earnest money be returned, I doubt that the broker or the escrow company would challenge it.