Return the Earnest Money

General Real Estate Investing
1

Has anyone attempted to get their earnest money back after seller breached Contract.
Builder on two homes has not completed Either. 90 days out and 35 days out on the other.
Builder won’t give completion date on paper for fear of proving self out of contract.
Will not refund E. money. My lawyer says clear breach of contract, his lawyer says nanner nanner we will give back half…I say bite …

His team will not respond to mediation, I filed Lis Pendens on both properties…
He is selling the other homes and after the transaction closes he is personally hand delivering a check to the buyers for “claimed” unused builder credits. Although this does not show up on his realtors paper work or closing statements.
One of the buyers is a Mortgage broker who recieved 90k after closing. He had the check made to his pal instead of himself and collected the cashed check later. Thing that make you go hmmmmmm. Another buyer/realtor recieved 35k but signed a confidentiality agreement.
Let’s see…I commit a crime for you, you sign a conf. agreement …so no crime…hmmmmm

I am not into extorsion but…any ideas
Darin

2

You’ve made your demand for return of the earnest money for non-performance of the contract and you’ve clouded the title to the properties. Tell the seller either return the funds or the courts are your next step. You might also suggest a letter to the building regulation authorities in your area as well as to the lenders on his other deals where he is refunding money outside of closing. good luck

3

Thank you 71tr,
Darin

4

The Lis Pendens was a good move. Time to hire a lawyer and put a hold on his other assets until the case is resolved.

I agree with 71tr. A letter to the lenders and any regulatory agencies involved is in order.