Expert: Dick Dennis - 9/8/2006

Question
Good Afternoon:

My husband and I were interested in purchasing a house.  The contract expired at the end of August and we decided not to renew.  In order for us to have our payment our real estate agent has explained that we have to write a letter requesting for the payment to be returned.  

What exactly should I include in the letter?  

To give a little background:

*We made an offer on the house at the end of June/beginning of July.  The home owners had accepted another offer in March and moved out in April with the intent that the previous offer would go through.  They explained to us that they would work with the previous offer until the end of July but would accept our offer making us second in line.

*During the last week in July we received a call that the other offer had fallen through and the owners were ready to work with my husband and me in purchasing the home.

*The home includes four garage apartments.  The lender that we selected to work with asked that the property be rezoned from residential to residential/commercial.  

*Within a week's time, my husband and I had an apprasial done on the house and had someone come out to determine rezoning.  My husband also meet with the town's department of zoning to determine the process, length of time, etc.  The process could take up to three months.

*The second week of August, the owner's real estate agent asked that we all meet.  During the meeting, the owner's explained that they did not want to pay to renew the commerical insurance and there was a possibility that they would be renting the house to save on the commerical insurance rate.  In addition, they asked for permission to go to the local bank to speak on our behalf to have the house purchased without the zoning and further explained that they would still list the house as active and the next contract would state that they had the right to accept an offer over ours while we waited for rezoning.  

*My husband and I decided not to invest any further time or money into the house if the owners planned to continue to accept offers.  

*During this time, we found another home that qualified for our loan.  It was simply residential.

*We are now having a difficult time getting the owners real estate agent to return our deposit.  We did not violate the contract, we simply decided not to renew it.  We did not close on another home while the contract was valid.  

Answer
As you know, Sue, the seller must sign a release of your deposit. Therefore, show that you mean it. Author a letter (with you retaining a copy) asking very kindly that the deposit must be released within, say, five days. Failing that, you will be forced to seek legal recourse (small claims court if less than $7,500). Send it certified mail and a copy to the real estate agent. You may want to include the agent and his company as a defendant although technically it is the seller who has control.

I do wish you well.

Dick Dennis                dixiedee13@aol.com