Legal Question in Real Estate Law in Maryland
I put down an good faith deposit 2 years ago of $2,000 on a home. After having the home inspection I decided not to buy the house and informed my agent. My agent (L&F) came back to me a week later and said the seller real estate agency (KK) was not going to return my good faith deposit. Last month the real estate agency representing me contacted me indictaing they still had the $2,000 and teh seller agency need to sign a release. The seller agency (KK) was told by (L&F) that the money would be paid to me if they did not respond. (KK) sent notice today that if I did not sign the release to them, they would take legal action on me. The agent working with me at (L&F) no longer works there, but, she might not have filed the paper work in a timely manner for me to get my deposit back. Back then she said I should go into mediation to get it back and then she stopped working as a real estate agent. I don't see why (L&F) should not give me back my deposit and work out the issue with (KK). My agent was representing (L&F) when she filed the paper work whether it be correctly or incorrect. How can I get my money back? What can (KK) do to me? What role should (L&F) play in getting the deposit back to me?
1 Answer from Attorneys
In these situations, and assuming your decision not to proceed to settlement was within your contract rights based upon the inspection, and that you exercised those rights on a timely basis within the terms of the contract, the listing agent (KK) gets a release from their client, the seller, so they are protected when the buyer's deposit is returned. It sounds like the seller balked at this initially, probably, as you surmised, because the LF agent didn't send the cancellation notice in time. It sounds like there was a lack of communication between you and your agent about this at the time. That would explain KK's initial refusal to release the funds held by L&F to you.
It sounds like KK is now willing to release the funds if they get a release from you. Since the return of your deposit will essentially make you whole (except perhaps for a little interest that the money would have earned if returned on a timely basis), you have nothing to lose by cooperating. If you don't the stalemate will continue.
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