TSARE #35 Earnest Money Deposit Disputes

<p>In this episode we discuss earnest money deposit disputes when a &nbsp;buyer defaults on a contract.</p> <p><br></p> <p><br></p> <p>A REALTOR®’s practice in Michigan is governed in part by administrative rules. &nbsp;Since 2002, the administrative rule relating to earnest money deposits has provided: (6) R 339.22313(6). Disbursement of an earnest money deposit shall be made at consummation or termination of the agreement in accordance with the agreement signed by the parties. &nbsp;However, any deposit in the trust account of the broker for which the buyer and seller have made claim shall remain in the broker’s trust account until a civil action has determined to whom the deposit must be paid, or until the buyer and seller have agreed, in writing, to the deposition of the deposit. &nbsp;The broker may also commence a civil action to interplead the deposit with the proper court. This rule was amended in response to several judicial decisions holding a REALTOR® liable for a buyer’s or seller’s attorney fees, because the REALTOR® had refused to release earnest money funds without a court order. &nbsp;These decisions failed to recognize a REALTOR®’s potential liability for releasing funds without the protection of a court order. &nbsp;Today, a REALTOR® faced with such a claim from an unhappy buyer or seller can simply point to the above-cited rule that expressly PROHIBITS the release of earnest money funds in the event of a dispute. PURPOSE OF INTERPLEADER AND</p> --- Send in a voice message: https://anchor.fm/tsare/message Support this podcast: <a href="https://anchor.fm/tsare/support" rel="payment">https://anchor.fm/tsare/support</a>