So, I called my lawyer and asked if she thought it was a good idea to offer the back-out buyer half the earnest money, in exchange for releasing half back to me without going to small claims court. I heard that this is sometimes done and it would make up for the loss on the townhome deposit, which I had put down due to her conditions to move out in less than 3 weeks time. The real estate attorney said to go ahead and have the real estate agents draw up a letter to that effect and she would review it. So, I called my realtor and told her that’s what we were doing.
Why Earnest Money Is A Fraud
I get a call back later that this offer that I intend to make is not correct because the real estate agents are saying there is wording in the contract forms now that give half the earnest money to the real estate firms should a buyer default. I was like:”What?! What good is earnest money if it isn’t protecting the seller?” She was adamant that they got half the earnest money, which of course, is unrealistic in the extreme. I said to her:”Give it all back, then.” From what I understand, small claims courts will divide the money anyways. If the seller gets half, and I get half (which goes to the realtor), I end up with zero and a whole lot of trouble for nothing. If my option is to give it all back or take her to court for the realtors benefits, she gets 100% of it back.
My Liability Is Their Gain?!
Think about it folks, these real estate agents believe that because they put wording in a contract giving them a piece of the seller’s pie, that we’ll go to court for them and make ourselves liable for them! I said:”What possible incentive can I have to go after money that isn’t even mine? And, if you think that I am going to take on all the liability while you take the money, it doesn’t work that way! Give it ALL back.”
Shame, Shame, Shame!
She was stunned, and kept saying:”Oh my, oh my! But, she’s in the wrong!” And, I said I didn’t care because either way it was a loss to me and it wasn’t right to put me in that position as a seller. The earnest money was supposed to protect me. What did they do to wriggle their way into that money? Absolutely nothing! Yet, they think I’m going to court to collect what amounts to their money for them? I say, let the real estate agents sue the buyer if they think it’s their money. I’ll just stay out of it and next time I will make sure this clause is not in the contract when I sign. She said it was a standard clause now. PURE GREED on their part, I’m sorry, but true. Are there no honest people out there anymore!!! It’s downright SHAMEFUL.