Q: Was under contract to buy a house. The seller backed out and took his house off market. I paid Approx $ 1,300 in fees.
The realtor ordered the appraisal and inspections but is saying I have to take the seller to small claims court to get my money back. Shouldn’t the realtor pay me back?
A: The realtor is not a party to the sales contract. If the seller breaches the contract with buyer, then buyer sues the seller. If realtor participated in the breach in some way, realtor can also be named as a defendant. It is not likely to be cost-effective to go to small claims court for that amount of money. But until the issue is resolved, the seller cannot sell the house until the contract if mutually terminated. So that might provide leverage to get seller to reimburse your costs.
A: Your purchase agreement usually has a provision in it as to the real estate agent cannot release the funds to either the seller or the purchaser in the event the purchase agreement is cancelled or breached. Typically, there has to be a written agreement signed by both, or a judgment directing the agent to disburse the funds according to the Court's judgment.
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