Seller has 30 days to return earnest money
Q:My client cancelled a contract within the option period. As outlined in paragraph 23 of the contract to purchase, the earnest money is to be returned to the buyer. How long is the seller allowed to sign for release of the earnest money? Seller’s agent said they have 30 days. I’ve never heard of a definite period that seller is required to sign release of earnest money when cancelled in option period. Assuming the contract is otherwise in order, the person making the demand for the release of the earnest money (your client, the buyer), should have given notice of such demand according to Paragraph 23 as follows: “If Buyer gives notice of termination within the time prescribed, the Option Fee will not be refunded; however, any earnest money will be refunded to Buyer.” We assume TREC Form 38-4, Notice of Buyer’s Termination of Contract, was
A:sent, properly completed, both to the seller and to the title company.
The title company has no interest in “purchasing” a lawsuit, so it has (by Texas statute) 30 days to receive and reply to the seller’s signing off (agreeing) in writing to the buyer’s demand, or taking issue with it. In any case, the seller has 30 days. That is why, in our opinion, many buyers submit only a very low amount of earnest money until they are satisfied the terms and provisions of Paragraph 23 are met, then they contractually commit to submitting a larger, more acceptable sum of earnest money.
Is there a provision in the Texas Real Estate Listing Agreement that allows
Q:for canceling the contract after five months? The agreement terminates later in June, this year. My Realtor has not had one showing either from her clientele. She has had only a few from the MLS. No offers have been received from either the MLS or repeat potential buyers.
There is no provision in the Residential Listing Agreement, Exclusive Right to Sell that provides for its early termination. The listing agreement is a contract between you and the broker, and both parties are bound by its terms. However, you can either request the broker assign you another Realtor affiliated with his or her firm, or you can request the broker provide you with a written termination of that agreement. This can be done at any time you become dissatisfied with the Realtor’s performance. Note, however, a fee for early termination may apply.
A:Q:Is it possible the people (whether volunteers or staff) in charge of the MLS agent group that advises them has determined Realtors in general require more time (three days?) to enter new listings and/ or the withdrawal or the termination of the same? The Houston MLS is comprised of an MLS Advisory Committee in addition to a staff member. They are all extremely hard-working. The volunteers contribute their time to ensure the consumers who are represented by Realtors, as well as the Re-
A:altors who represent them, comply with the Texas Statutes when applicable, as well as are fair and adequate. If the MLS Advisory Committee should determine a property does require to publicly display that it is listed (or withdrawn or terminated) in a shorter time than three days, then they will (as a committee) offer that determination to the next meeting of the HAR board of directors. Said suggestion will either pass, be rejected or be modified.
I have a contract that is scheduled to close this month. There also is a backup contract and addendum in place that has been executed with earnest money. Can I extend the closing date on the first contract? Or if the buyer cannot close on time, does that mean the backup becomes active? The seller is willing to extend the first contract a few days in order to close.
Yes, you can extend the first of the
Q:A:two contracts (use the Amendment To Contract form). The Addendum For “Back-Up” contract states in Section A, in pertinent part, “… neither party is required to perform under the Back-Up Contract while it is contingent upon the termination of the First Contract.” Further, in Section C of the same form, it states, “An Amendment or modification of the First Contract will not terminate the First Contract.” As long as you keep documenting through the use of the Amendment To Contract form and checking the appropriate spaces, you can keep amending the contract as many times as you want.
To send us a question visit www.AskGeorge.net and select the “Ask A Question” button. Our answers to questions do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George Stephens is the broker of Stephens Properties. Charles J. Jacobus, J.D. is Board Certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law.