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View Full Version : I failed to qualify for a loan. How do I get my earnest money back? Oregon


qacrawler
07-04-2006, 01:40 AM
Whether you are entitled to the return of the money depends on the contract you signed. REA cannot provide legal advice on such matters, so you may need to consult your own attorney. You could contact the person who is holding the money and find out what that person requires to disburse the money. If the money is being held by an escrow agent, the escrow agent will require both parties to the earnest money agreement to sign a release. If the parties cannot agree to a disbursement, the escrow agent could file the money with a court and seek a court order resolving the dispute. This process is called an interpleader action; it may not be the solution of first choice, since the escrow agentīs attorney fees can be paid out of the disputed funds, perhaps leaving little to disburse to either the buyer or the seller.
In some cases, a real estate broker will hold the earnest money in the brokerīs client trust account (CTA). Unlike the escrow agent, the broker may disburse the earnest money without first obtaining a written release from both parties as a condition for disbursing the earnest money. If the broker requires a release, the release should not purport to relieve the broker of liability for the brokerīs performance in the real estate transaction, only to release the broker for liability for disbursing the money.

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