About Eric Sexton Expertise All aspects of buying and selling homes including: General real estate questions, Contracts, Negotiations, surveys, title work and general questions about mortgages. I CAN NOT GIVE LEGAL ADVICE AND WILL NOT BE ABLE TO ANSWER QUESTIONS WHERE LEGAL ADVICE IS NECESSARY.
Experience
I have been a real estate agent for 6 years and a broker for 2 years.
Organizations National Association of REALTORS and Texas Association of REALTORS.
Expert: Eric Sexton Date: 8/2/2007 Subject: Earnest Money Check Cashed
Question Can an owner turn down an offer to purchase and still cash the earnest money check?
This is a bank owned house. We made an offer with a $1000 cashiers check. The owner deposited the check on the day we made the offer and then turned down our offer and countered.
Answer Rhonda,
When making an offer on a house that is NOT a foreclosure, the earnest money should not be presented to the seller until the contract has been fully signed by both parties This is referred to as being "executed".
In every foreclosure situation (which is what you are dealing with here)I have ever dealt with (while representing the buyer or seller), the seller only wants a copy of the earnest money check until the contract is executed.
I am assuming that when you state "The owner...." that you are referring to the bank. I have a few questions for you:
1) Was the bank being represented by a real estate agent or were you dealing directly with the bank?
2) Were you being represented by a real estate agent (your own or the bank's)?
3) Who did you give the earnest money check to (the bank, their real estate agent, your real estate agent or the title company)?
Let me know the answers to the questions above and I can give you a better answer. Generally speaking, things should not have worked this way.
