[frayedends]

Originally Posted by retiredguy123

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.

Yeah this situation is confusing. I’m used to the buyer having an agent that asks the seller agent for a release. Massachusetts is an attorney state so usually if there is disagreement the attorneys hash that out.