Expert: Dick Dennis - 8/14/2009

Question
On Aug. 1, 2009 I recently hired a real estate professional to short-sale my house.  $2000 was the required amount but I paid $1000 as a down payment with the other $1000 to follow when I filled out all the paper work.  After consulting with my attorney I e-mailed the real estate professional on Aug 11th requesting a cancellation and the refund of my money.  She said they usually do not refund monies but since no work had been done she would have to talk to the broker...that was 3 days ago and still no answer.

I am sending another email to her stating that if I do not hear from her by Monday I will contact the broker personally and if necessary contact the Realtors Association and the AZ Real Estate division to file a complaint.

I believe I am entitled to a full refund of all monies.  Am I correct?  If not why?

Answer
As far as I am concerned, Marsh, you are right. You should have received a refund. If that person is truly a real estate professional, then you should not have any problems. Indeed, you should talk to the agent's broker (boss) and get your refund that way. However, if they have done some work on the short-sale, like having you do a distressed letter to the lender and the agent and/or his/her company actually did some work the the lender like at least starting to negotiate with the lender, then the agent has earned some if not all that money. You did not indicate if the agent's company did any work or not. All the broker has to say is that some work was done and you would have a hard time in court getting a refund. If you can prove that nothing was done at all, then you got a good shot. I will bet the attorney said the same thing. I do wish you well.

Dick Dennis