Expert: Karyn Foley - 4/1/2007

Question
I signed a contract to buy a townhome in Florida.  Closing was supposed to be on March 20th according to the contract.  At the time of the contract I gave a $1000 check that was made to the title company.  The check was cashed on March 12th.  March 20th came and went, and my broker kept on putting me off with different excuses about why we couldn't close on the 20th.  Since that day came and went, I no longer interested in purchasing that home.  Will I be able to receive my deposit back?  I'm not sure why it was addressed to the title company or why it was cashed before the 20th.  Thank you.

Answer
Dear Mary:  Sorry you are going through this crisis.  It should be a happy time rather than causing you discomfort and stress.  Good faith deposits like your $1,000 are cashed so that the parties know that it is valid, good, and that the buyer is acting in good faith.  If it had not been good, you would not have a binding, legal contract.  You deserve answers!  Make an appointment with the manager or owner of your agent's real estate office and get all the information to which you are entitled.  If that fails, go to the title company and get answers.  Keep in mind that the closing date is, at best, a target date and there are many legitimate reasons why the commitment was not kept.  If, however, the reasons sound fishy to you, you may wish to contact a real estate attorney, letting everyone know of this plan.  If the reasons are legit, you may not be able to remove yourself from the contract without losing your one thousand dollars.  This would be because you might indeed be defaulting on your obligation.  As real estate agents are not allowed to "practice law without a license", I cannot give you legal advice or tell you what reasons may or may not be legitimate for your situation.  Also, I do not have a copy of your contract.  Let me know what the reasons are for the delay, and perhaps I will be able to offer insight rather than legal direction.  Please do not lose heart as you may end up with the townhome that you really loved at one time, and probably still do.  Keep in mind that the seller has made plans and obligations that he/she must keep and is relying on your purchasing the townhome in order to meet those plans and obligations.  Let me have additional information and we can take it further once I know what answers you have received and the progress taking place.  Good luck, I hope it all works out. Karyn