Expert: Dick Dennis - 5/29/2007

Question
My brother-in-law recently passed away - before he died, he was renting a duplex, and he had placed $4000 in earnest money with the intent to purchase the property.  The rental agreement was through 6/15/2007 and his ex-wife and family will have all his personal effects out of the house prior to then - but the seller is refusing to return any portion of the earnest money.  I have a couple of questions - shouldn't the earnest money be in a trust or escrow with the real estate agent (and yes, there is one as this potential sale was not made directly with the seller)?  If so, how is the seller in a position to refuse to return the money?  And, shouldn't his estate be entitled to at least a portion of this money back considering the contract never went through by virtue of his death?

Thank you for your response,

Jason

Answer
This is a case for SUPER ATTORNEY.

But seriously, Jason, this is something that should be handled by an estate attorney. That deposit your brother-in-law gave as part of a purchase is NOT the seller's until the property closes. It is still part of your BIL's estate. Yes, it should be in a broker's trust account or escrow company's trust account. The attorney will make sure it is returned to the proper possession.

I do wish you well.

Dick Dennis