We accepted a purchase contract in good faith. Four days later we find out that the buyers agent did not keep the earnest money but gave it back to the buyer after making a copy of it to attach to the purchase offer. So escrow has not been opened. Now we are told that the buyer has some court issues to take care of out of state and wants to cancel. I understand that there is usually a 10 day inspection period, but buyer waived this because he wanted to close in 9 days of us accepting his offer. Do we have any options for getting the earnest money? Why would the agent fail to keep it and open escrow as she should have? We are in Arizona. Thank you.
Real Estate Attorney
My first question re buyer's termination is: what does the contract provide? Just because they wanted to close in 9 days does not absent an express change to the form agreement translate into a waiver. I have to guess they would still have wanted to do an inspection.
As the behavior of the agent, I cannot say unless he/she knew what was up. Consider making a complaint to the Arizona Department of Real Estate if you feel the agent harmed you. However, if, in the end, the buyers did have the right to terminate, it may not be worth the trouble. Better to focus on getting your home back on the market and sold!
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