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Deposit Entitlement


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#1 BefuddledBuyer2011

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Posted 14 December 2012 - 09:39 AM

In the spring of 2011 I put a deposit on a house in PA in the amount of $1,000. After reviewing the home inspection report I decided not to purchase the property and terminated the sale. About a month later I received a paper from the owner of the property (who is also a real estate broker), saying that he terminated the sale because I did not close on time and that I forfeited the deposit. I refused to sign. I was told by someone who used to work in real estate financing that I should get the money back after two years if he didn't file papers to take it. Well, now he wants the money. He contacted the real estate office that was holding the money in escrow and requested that they send me papers to sign releasing the deposit. When I received these papers I noticed that they were signed by his son. It turns out the company that was holding the money is a real estate office that he worked for for many years and now his son works there and is apparently responsible for handling the escrow account. He did not disclose this to me. I find this to be highly unethical and wonder if it is legal. Is he entitled to the deposit money? Is this against the law? I can't seem to get a straight answer from anyone.

#2 Guest_FindLaw_Amir_*

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Posted 14 December 2012 - 10:13 AM

Did you sign a real estate offer contract for the house?

#3 BefuddledBuyer2011

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Posted 14 December 2012 - 12:19 PM

Yes, I signed a real estate offer contract.

#4 pg1067

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Posted 14 December 2012 - 01:05 PM

Depends entirely on the terms of the contract(s) you signed.

#5 Guest_FindLaw_Amir_*

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Posted 14 December 2012 - 02:37 PM

What does the contract state about this deposit?

#6 BefuddledBuyer2011

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Posted 14 December 2012 - 04:43 PM

The contract says I forfeit if I don't meet the closing date, but I also had a home inspection clause. He says that I broke the contract, but I don't see it that way. He has as much as said that he will sue to get his money, but wants $200 an hour mediation first. I found another place and don't have a lot of money. Should I give up or fight?

#7 pg1067

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Posted 17 December 2012 - 07:33 AM

It's a small claims matter. Most folks would not think it worthwhile to spend $200 (or more) for mediation or attorneys' fees.




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