Today, I am into risk management. While involved in a transaction, the Buyer, who was my customer, backed out of the transaction: 1) the property did not appraise, and 2) bank denied financing. I had added 2 addenda to the sales contract: 1) appraisal contingency 2) financing contingency. Since neither could be accomplished, I proceeded to send a release of deposit as a formality. Here comes the Seller’s agent requesting the deposit based on a section of the main contract indicating that the Buyer’s bank had not notified them in a timely fashion…so the Seller was entitled to the deposit.
Of course, we are now into the escrow disbursement order awaiting FREC to tell us what should be done. However, in any case, I believe that the Buyer will get his deposit returned…the addenda supersede the contract. In other words, an addenda over-rides what is printed in the contract. The Listing agent doesn’t believe that…actually, I really think he doesn’t know as he continually asked me where in the contract I believe my Buyer is entitled to his deposit. I keep telling him to READ the entire contract, and since this agent has been in the business for some time, I truly don’t believe he knows what he is doing. I want to call his Broker and tell him that he might want to educate his agents but that’s not my business.
So my fellow REALTORS, keep getting educated. Our business constantly changes and there is always something new….we can never stop learning…our profession demands it.
Until Next Monday…