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You are here: Experts > Cities/Towns > Texas > Real Estate: Texas > Earnest Money
Expert: William Cady
Date: 7/14/2007
Subject: Earnest Money
Question
Sir
You attempted to answer a question for me, but said you couldn't give me advice because I was using an attorney. This attorney is a friend of the family and is not charging a fee - I am not formally a client. He has said that he does not know what to tell me.
This was in regard to my ownership of the earnest money check that had been delivered to a title co. The contract was cancelled 7/9 and the option period ended today, 7/13. The title co informed me that I could pick up the package that had not yet been processed - then called me back 2 days later saying they should not have done that.
My question was what am I to do - do I have to return the earnest money check even though the contract has already been cancelled? Does the release of earnest money form release all parties from the transaction or did the cancellation of contract do so? I know they already have the option fee, and I don't get that back. I don't want to be doing anything illegal or give them grounds to sue me for specific performance. I realize what a normal transaction is - this one was not normal from the beginning! I won't bore you with why.
Answer
The termination of contract gave notice from you to the seller that you were exercising your right to terminate during the option period. That is what cancels the contract. The Earnest Money form is what gets you your money back. According to the verbage when you and the seller sign it you are both agreeing that you are done.
If that has happened it should be over, unless the seller decides to give you a hard time about getting your earnest money back.
Are you telling me that you currently have the earnest money check that you wrote out initially and it never got deposited?
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