Seller Making Demands

There is no question…just a rant…about 3 years ago I sent a letter to an owner of a empty vacant house…3 years later that owner called me back to tell me that she wanted to sell her house to me as-is…I said great and we came to a good price. I sent her a contract and now she is balking at the binding deposit and other language in the standard purchase agreement. She wants a $500 deposit and I am not going to tie up any kind of money like that…esp not knowing whats going on with the title. Her reason is that because I am tying up the property for 45+ days. WTF? She has done nothing with the property for 3 years since I sent my letter and now she is worried about 45 days??? and making demands??? Not very motivated I guess.

So I will probably end up passing on this and that’s ok. I am empowering myself to walk away and go find the next motivated seller. I just have to laugh at people who go through the effort to find me and contact me and then think they can start making demands…


 I think reading your posting I am a little confused? 

You sent a contract on a deal with binding deposit, she (Seller) wants $500 dollars for earnest money and your not tying up money for a signed contract because your unsure of title.

I would put up $500 dollars all day and double on Sunday’s for a signed contract, notice I did not say “Offer” as once it’s signed it’s my property (Subject to closing) and my profit!

Now title should be being handled by a title company, the $500 should go to a title company and under every state law if title is not clear or can’t be cleared then you get your $500 back!

If this was good enough of a deal to make an offer on and good enough for you to negotiate a price, then $500 is a small earnest money request to go into escrow!

Most of the stuff I do single family the listing broker want’s at least a $1000 dollars.

Putting as little as $10 dollars earnest money with an offer is just fine, waiting for a counter offer, an agreement, negotiating price, waiting on other offers, etc. $10 is great!!!

Signed contract, contract to open escrow, earnest money increase, demand or request for more significant earnest money with signed contract, just fine!!!

$500, $1000, $2000 or $5000 dollars with signed contract, just fine if I am making money!!!


I agree with GoldRiver, you’re tripping over the dollars to get to the pennies (I believe that’s how the saying goes). Give your $500 to your attorney so you can make sure you get it back if the seller cannot close due to title. Also, I am sure that your contract specifies that the seller must be able to deliver clear and marketable title if not, the deal is null and void.

If it’s truly a good deal, don’t be afraid to tie it up with your cash.

I never have a problem with putting up earnest money for a purchase. All my contracts state the money will be held in escrow until closing and revert to the buyer if closing does not occur. And…I put the money in an escrow account that I control with my own bank and send the seller a copy of the deposit slip. The seller never has signing privileges on the account.


Thank you for the feedback.

I hope my answer can help either explain myself or maybe steer me to a better response. I am not the end buyer…this is meant to be a wholesale so if the seller cannot provide clear title I understand I don’t lose the deposit but if we can’t close because I can’t find an end buyer then I am under the understanding that I will lose the deposit and I can’t afford to lose $500. I don’t have that kind of cash at my disposal right now at this point in time.

Thoughts on how to work it so I eliminate my risk? if so then I will do the deal.