Legal Question in Real Estate Law in Texas

Problems getting our earnest money back

My wife and I were supposed to close on a house April 20 2007. The night before closing we were informed the seller owed $20,000 on the property and could not close unless she brought the deficit to the table - she could not. She claimed this was a mistake and she would contact her mortgage company and we should be able to close within 1 week. We were now in a predicament as we had given up our leased house! Because of this we agreed to lease the property until closing. We have now been signing amendments to the contract on a weekly basis for 2 months. 2 weeks ago I verbally informed the seller that we were going to look for another house...she does not remember this conversation! We found a new home last week and have signed a contract with a view to closing next Friday. The seller is now refusing to release the earnest money as she says we are defaulting on the contract....she still cannot close and we still have no date for closing!!! The contract was written up on a standard TREC form. What can we do? Please please help.


Asked on 6/23/07, 9:27 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Problems getting our earnest money back

It is possible that you are not obligated to buy the house if all amendments have expired. You should have someone look at the contracts and all amendments to assess where you stand.

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Answered on 6/24/07, 10:50 am


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