We were supposed to close today. The lender called late yesterday and was unable to get a positive verification of employment on the buyer. The buyer's agent just called me to tell me they are going to have to terminate. Loan objection deadline was over a week ago. Legally, I know we have the right to keep the earnest money. I prepared an earnest money release and the sellers are signing and we will forward to the buyer. Any advice on how to handle this situation with the most effectiveness to get a speedy return on the earnest money?
Ask the title company that his holding the money. They might have a form they prefer to use, but if both parties agree and sign to disburse to the other party, they are obligated to disburse.
If you are worried the buyer won't sign, you can always remind them of their deadline to object to the loan and that if they choose to litigate, the prevailing party will get their fees paid for by the nonprevailing party (assuming a standard CO-approved buy/sell agreement was utilized).
This answer is for informational purposes only, is not legal advice regarding your question, and does not establish an attorney-client relationship.
It sounds like you're on the right track. If they don't respond promptly, just follow up consistently. They probably won't get their money back unless your seller signs to release, so they will need to deal with the situation.
The information provided in this answer does not create an attorney-client relationship and is not considered to be legal advice
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline