What happens when Sellers refuse to release the deposit?

Secondly, the deposit can now actually be given back to the buyer as the conditional clause states in the Agreement of Purchase and Sale. The buyer will have his deposit and is free to purchase another property. Thirdly, brokerages and their Realtors are no longer stuck in the middle of this dispute.

What happens if seller does not deposit earnest money?

The earnest money is not consideration for the contract. However, if the buyer does not deposit the earnest money with the escrow agent within a reasonable time after contract execution, the buyer would be in default, and the seller could exercise her rights under a default provision. The termination option fee is handled differently.

What can you do when the buyer won’t sign the release of?

Most title companies have a policy of not releasing the earnest money without both buyer and seller agreeing who gets it. They don’t want to get drug into a law suit. If the Buyer will not sign the Seller should them to small claims court. Disclaimer: Answers provided are just opinions and should not be accepted as advice.

When to release a deposit on a property?

It may also be prudent to limit the deposit being released to a specific sum (e.g. 5% of the deposit) and require the vendor to represent the amount of debt on the property as a percentage of the purchase price. Occasionally a deposit is required to be released for general purposes.

When to release escrow deposit to the seller?

This presumes, of course, that the buyer is certain she can close escrow. However, if it’s just a matter of a few more days, releasing the deposit to the seller is akin to putting your money where your mouth is. It says the buyer is serious and confident about closing.