Expert: Toni Yates - 7/29/2009

Question
Hello,
I live in the state of Michigan. I have a problem with my (Previous) real estate agent when I finally decided to cancel my offer (Cash not mortgage) after waiting so long for it to get accepted by the bank (Bank owned house). I felt that my agent was not following up with the bank and probably was busy with better and more profitable deals with other sellers and buyers therefore I decided to cancel the offer that was sent through him and put the same offer through different agent who can provide me with better service. My agent said that if I chose to cancel the offer, I will not get the deposit check I submitted along with the offer.
My agent has cashed the check long time before I decided to cancel the offer. What can I do in this situation. Please I need your help.

Thank you,
Ibrahim

Answer
Hello Ibrahim-
Thanks for your question. A lot depends on your contract but in general, unless there was a definite deadline that the bank had to respond by and if you had a ratified contract, you could lose your deposit for "changing your mind." However, and this is a big however, if your contract was not fully ratified (signed by all parties including the bank) you should have the option of withdrawing your offer UNTIL IT IS ACCEPTED.In Virginia and I believe in most states, your deposit check should not have been cashed unless there was a ratified contract.If this was actually an REO and not a "short sale" it doesn't sound like you had a ratified contract. Your new agent should make sure a withdrawal of offer was submitted prior to submitting a new offer. In fairness to the first agent, banks can take a notoriously long time to review an offer. However, it is good practice to let the client know the status periodically even if there doesn't seem to be any progress. Hope this helps. A review of your contract by an attorney or broker might be a good idea. Best, Toni