Expert: Hans Weber, Licensed Broker Associate - 7/3/2004

Question
I've just purchased a home a few days ago here in Massachusetts and this is what happened, during the day of closing the seller denied about taken deposit moneys from the tennets. i have interviewed with the tennets before closing and they all claims that they've gave the previous owner the deposits and last month rent. Here is the tricky part, none of the tennets has any recipts to back up their claims and i am sure they're not lying. Also, during the day of the closing the seller did not show up but his reprensent attorney. Right now, his attorney is still withholding the money and he says he wouldn't disburse the money to his client until the whole thing resolved. this attorney is working for the seller is he's word reallly trust-worthy?I am just wondering what could be the possible
outcome if the seller is reluctant to cooperate?
am i gonna responsible for the deposits? is it still possible to revert the whole transaction as of this point?   thx

Answer
Hi Mike,

Thank you for your question.

It sounds like you already closed and own the property.  And since there is a dispute about the tenants' deposit money and last month rent the seller's attorney is holding an amount equal to that in escrow pending resolution of this fact.  This escrow agreement must have been agreed to by you and your attorney and it has terms which need to be met in order for either you or the seller to get the money.
If the tenants have no proof they gave the seller security and last month rent then they have problems too.  Do they have leases?  What does it say  in the leases about security and rent?
It sounds like this will have to be arbitrated or settled to compromise.

Let me knwo how it goes.

Hans