Q: Selling home in CO, buying in FL, agent failed to offer FL purchase include contingency re:sale in CO Lose earnest $ ?
Agent was not tending to my best interest. My home in CO was 'under contract' which I thought the buyer had put earnest $ down. CO agent left for vacation in Mexico. Her co-worker called to tell me the buyer for my house failed to put earnest $ down and disappeared. Recommended I cancel CO contract. I am on a fixed income due to having cancer. I chose not to close on FL home four days prior to scheduled closing, My agent in CO returned from Mexico two days prior to closing and tried to convince me she had talked with my agent in FL and both were sure my CO house would sell in a matter of days. I chose not to wire $200,000 to FL as I thought loss of $5000 was the lesser of two evils, stuck with two mortgages and losing everything. Do I stand a chance protesting the loss of my $5000 earnest money?
A:
It partially depends on the agreement you signed with the agent in FL and CO (the FL agreement being the most important). If you had a contingency clause (the FL purchase was conditioned on the sale of your CO home, you should get your down payment/earnest money back). If the is no contingency clause, recovery is less likely. Have an attorney review your situation.
As an aside the safest approach in your type of situation is to delay making an offer until there is a firm offer on your old home (with money is escrow) OR have a conditional sale clause added to your new home purchase (I know this advice at this point is shutting the barn door after the cows have left...).
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