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Need real estate deposit advice

Old 02-03-2007, 10:04 AM
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Default Need real estate deposit advice

Last year, I put a $1000 deposit on a house. I wasn't able to qualify in the short time span that the seller demanded. The seller refused to release the deposit afterwards even after receiving a letter from me and my attorney friend.

Yesterday, I received a summons as I and the seller are being sued. The way the contract reads, reasonable attorney fees come out of the deposit and then a judgment for the remainder comes from the losing party, presumably the seller. I am not terribly concerned about losing this lawsuit, but it is annoying and will require that I pay more legal fees to defend my interest. I know the deposit is gone - I am okay with that. I just don't want a judgment for the legal fees.

Has anyone been through this?
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Old 02-03-2007, 11:08 AM
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Default RE: Need real estate deposit advice

Why are you being sued and by whom? How does the contract in question read?
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Old 02-03-2007, 11:12 AM
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Default Re: Need real estate deposit advice

Yea... what bitefish said...... WTF.....
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Old 02-03-2007, 01:50 PM
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Default Re: Need real estate deposit advice

Both the seller and I are being sued by the title company which had to hire a lawyer to determine who to give the money to. Thus, this is to pay the legal fees of the title company.

The contract firmly favors me (not my biased opinion, but in the the opinion of my attorney).

When the seller refused to release the deposit that I was legally entitled to and after several requests from me, my attorney, my realtor and his own realtor, he smugly told his realtor that there wasn't anything bad that I could do to him. And he is right. I am hoping that the courts will side with me and slap a big@ss judgment against his sorry @ss.

I have bought and sold 11 houses over the last 15 years. I have never had a problem with releasing the funds when I was the seller or of getting my deposit back if the contract allowed it. This is a first for me and my realtor, who is a big-time $$$ realtor, has only seen this a handful of times in her 3+ decades as a realtor.

There has to be a disincentive for the seller to refuse to release the deposit and I think I now know what is.
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Old 02-03-2007, 05:41 PM
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Default Re: Need real estate deposit advice

If the sale was contingent on obtaining financing, you should be free and clear. Let this be a lesson..use a COMPETENT real estate attorney for closings, not a title company.
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Old 02-03-2007, 07:14 PM
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Default Re: Need real estate deposit advice

billinstuart - 2/3/2007 5:41 PM

If the sale was contingent on obtaining financing, you should be free and clear.
It was and I think I am...

Let this be a lesson..use a COMPETENT real estate attorney for closings, not a title company.
No lesson to be learned. The problem wasn't with the closing...
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Old 02-03-2007, 08:50 PM
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Default RE: Need real estate deposit advice

things are slow they have to try and make a buck some how.the boredom must be killing them
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Old 02-03-2007, 08:51 PM
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Default Re: Need real estate deposit advice

Uhh..you're right. There's -2- contracts used in this part of Florida..FAR and FAR/BAR. Florida Association of Realtors, and the lawyers version, both of which specifically address the issue. I guess the difference between title co. and attorney is who holds the deposit. There is a specific procedure that is delineated by the FREC as to deposits and their handling. Good luck. Illigitimum non carborundum (don't let the bastids grind you down)
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Old 02-04-2007, 12:03 PM
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Default Re: Need real estate deposit advice

If he loses he should pay the fees. 2 issues, you both pay for the title co to determine who it should give the $$ to and then you sue the seller for holding the deposit for no reason. Hopefully the contract provides for attorney fees to be paid by the loser in any litigation. You are already in court, you should be able to file a cross claim against the seller since the same set of facts give rise to both your claim and the title company's claim.

Here in CT, if there is a dispute as to a contract deposit, the escrow agent (an attorney here in CT) can pay the deposit over to the clerk of the court, is absolved of any claims by the parties and the parties then petition the court as to who is entitled to the funds. Thereby the escrow agent does not incur costs and liability.

Again, here in CT if an attorney for a seller was refusing to release the deposit to the appropriate party, if the issue were clear, they would run the risk of being reported to the bar for discipline. However, if the client does not give permission for the release, there is the paying into the clerk of the court option.

Good luck, you are already spending some $$, spend a little more and make the asshole think twice before he tries to FUK someone else.

Arrogant MF. In addition, you know what I would have done is to place a lien on the property so that he could not sell it to anyone else until your funds were returned.

Good Luck again.
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Old 02-04-2007, 12:32 PM
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Default Re: Need real estate deposit advice

billinstuart - 2/4/2007 2:41 PM

... use a COMPETENT ... attorney ...
That's funny!!!
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Old 02-04-2007, 02:47 PM
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Default Re: Need real estate deposit advice

Eyeball - 2/4/2007 12:32 PM

billinstuart - 2/4/2007 2:41 PM

... use a COMPETENT ... attorney ...
That's funny!!!
How so?
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