Dear Monty: We are trying to buy a house, but the seller backed out of the sale. The real estate agent is holding our deposit until the seller pays their commission. I know this is not legal, but how can I get my large deposit back?
Monty’s Answer: The seller signed two contracts in this transaction: the listing contract with the broker and the purchase contract with you. The answer to your question is likely in the purchase contract between you and the homeowner.
Every State Has Different Rules
Not knowing the property’s location makes it an unanswerable question for me. Every state has its legal theories and statutes. Wisconsin law is the basis for the comments below. Check your contract for similar language about earnest money, and you may find your answer….