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I entered a purchase agreement to buy a condo and gave my agent $1000 earnest money. I exercised my due diligence and signed

Alpharetta, GA |

a termination and release, which the seller refuses to sign. The seller is in breach of contract because he signed the contract which allows for me to terminate under due diligence. Can I sue my agent for the unreleased earnest money rather than the seller as the seller is not worth going after, but my agent is more established so that I could enforce a verdict. Thank you

Attorney Answers 2


What you have described here is a situation where the owner breached yet you want to sue the agent. On what basis? To collect money from someone, you must be able to show how/why that person owes you the money.

Before you file a complaint that potentially causes you to lose your right to recover, you should consult with an attorney regarding how to best proceed.

I hope this information helps answer your question(s).

~ Kem Eyo

The above answer is a general explanation of legal rights and procedures. It does not constitute legal advice. Nor does it establish an attorney-client relationship between the individual posting the question and the attorney providing the answer.

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Depending in your contract, the entity or person holding the earnest money is in a fiduciary capacity and cannot release the funds without a fully executed termination and release statement. If one part refuses to sign, there is a dispute and the holder of the funds cannot pick who gets it. The holder of the earnest money can interplead the earnest money into court and each party can make a claim to the court. Unfortunately, with the amount being small, most of it may go to court costs and perhaps attorney fees.

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