Boulder, CO asked in Contracts and Real Estate Law for Colorado

Q: If my realtor never had me sign contract to sell to buyer & closing date has passed do I have a right to earnest money?

My realtor never sent me the contract to sign. I did sign an amendment to lower price. If I didn't sign the original contract am I still bound to contract.

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1 Lawyer Answer

A: If no contract was signed (!) the answer becomes unclear. Contracts can be imputed with action (performance) and/or reliance. This usually does not apply for real estate contracts (which tend to favor strict construction rules), but there is a level of uncertainty for the services by the realtor versus the actual home sale. If you did sign an amendment it is very likely that the signature would impute that the unsigned listing agreement should be treated as if it were signed, but this is not certain.

As for keeping the earnest money, this usually turns on the terms of the offer agreement. Usually a missed closing date does not grant an automatic right to the earnest money until a reasonable period has elapsed (unless the contract was listed as a "time is of the essence"). However, once this reasonable time has elapsed (or the terms of the offer agreement are met) you should be entitled to the earnest money.

It is highly recommended that you contact a real estate attorney. An attorney would need to review all the documents and facts of this situation to make a reasonable determination of the best course of action.

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