Expert: Hans Weber, Licensed Broker Associate - 8/7/2006

Question
Hello,

I sent $1,000 to a developer who assured me (I kept hardcopies of the emails to his office) that the money would be refunded regardless if I purchased the property or not.  I flew to North Carolina to look at the property which was not offered yet on the market and came back.  My spouse did not want to buy so I was sent back the check. Then there was presented to me an potenital opporunity to still buy (in the meantime, they resurveyed the lot and were now asking more however agreed to still offer me the same price as long as I sent the deposit back which I did).  The website also listed the Grand opening of the property as 8/1/06.  I tried to secure funding but ultimately decided not to pursue.  I emailed the gal who I was in contact with at the office on 7/17 that regretably we would not purchase and could she please send the check back.  SHe responded that she would hold the check for a few more days in case we changed out minds...  THen the following Monday, she emailed me that she now has to exercize the right of refusual as someone has made an offer at the higher price (almost $10,000 more of asking price mind you) and I replied could she please send the check.  Multiple emails have resulted in no response.  I plan to call her tomorrow as it has been a week since her inital email that she was going to 'exercize' the first right to refusal...  Please tell me that they do not have the right to keep my money when there was NO formal written agreement and even the verbal agreement does not seem to give any right to keep my money?  Thanks very much for your response!  

Liz

Answer
Hi Liz,

Thank you for your question.

You said they were holding your check.  Did they ever deposit it?  If not put a stop payment on the check at your bank.

You should probably call the developer's office and verbally request the return of your refundable deposit and follow up with a letter in the mail.

If you are dealing with a reputable developer they should follow up on their promises.

However, without reviewing their offering plans it is hard to determine whether they have the right to keep your deposit or not.

Best is for you to call and write a polite letter.

If you get no response then you may need to talk to a local attorney about the matter.

Good luck.
Hans