Legal Question in Real Estate Law in Michigan
Refund of deposit ?
I signed a purchase agreement for a bank owned property threw a real estate with provisions that it must be surveyed and unwinterized for a home inspection. It turns out their were encrochments and massive plumbing problems that were not disclosed at signing. The water could not be turned on and the home inspection was not done. The mortgage company would not fix anything and said as is. So I retracted my offer and requested by deposit back. Do they have a right to keep my deposit since I haven't received it in over a month?
1 Answer from Attorneys
Re: Refund of deposit ?
No, they do not have a right to withhold your deposit without advising you of the reason why. The only reason to withhold your deposit is that the seller is disputing that it is yours to retain. In that case, the broker must notify you and file an action requesting that the court decide to whom the deposit belongs.
Ask the Broker to advise you the name and address of the bank account where the deposit is held; and ask for proof of the deposit. The broker is to deposit within 2 banking days after notice that an offer to purchase is accepted by all parties. You may be able to get to the broker on this aspect alone as this is a serious violation if found.
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