If you refuse, the seller can make a claim or even take you to court to get an order for escrow to release the deposit as "liquidated damages." The contract has a section that states the seller can keep the deposit up to 3% of the sales price as penalty for the buyer's breach. A seller needs to scrutinize and minimize every buyer back door addendum and close any that they can, says Davis. The answer is the broker must notify the FREC within 10 business days that the matter will be resolved by the courts. Of course my Seller refuses to sign this version and everyone is arguing with one another and leaving me and the other agent stuck in the middle. In competitive markets, you can ask that all or part of the earnest money be non-refundable. Thus, if needed, choose the checkbox labeled Other and then utilize the space this option provides to give a detailed report on how the Escrow Agent must proceed with the release. (10) Both Parties. C) release the earnest money on the buyer's verbal approval. If after 15 days the . He failed to get financing after 5 amendments (almost 3 months). Determine the amount of interest expense for 2020. Her work has appeared in the New York Times Magazine, Vanity Fair, and Boston Magazine. The answer is $87,200. The amount has to be reasonable at the time of signing the contract. The answer is the broker is guilty of commingling. In this window of time, the buyer can terminate the contract for basically any reason that has to do with the condition or status of the property. the Replacement Date, whereupon the Earnest Money Deposit shall be released to Buyer. Confidential or time-sensitive information should not be sent through this form. The Residential Purchase Contract ("RPA") imposes on the Buyer and Seller certain obligations, one of which is to deposit their Earnest Money into Escrow. Asked by REALTORS Categories: Realtor Only Report Abuse 2 answer (s) found All Answers Bronze If your buyer is delaying the closing, have your real estate agent draft a Demand to Close Escrow. This field is for validation purposes and should be left unchanged. All purchases and sales were made with cash. If the seller refuses to refund the earnest money deposit get in touch with a lawyer immediately. But the opposite holds for slower markets, where a buyer can put as little as 1% down. An earnest money deposit can be anywhere between 1 . The typical amount is around 1% of the purchase price (ex. Putting down earnest money is amonetaryway for you to show your commitmentto the purchaseof a home. If you are receiving multiple offers, you can ask buyers to remove contingencies in their contracts. The date when this release is developed for issue is the first item required by this letters introduction. If you signed a standard CAR form, you will be required to attend mediation before filing a lawsuit. By: Editorial Team. If the buyer prefers, the money can instead be applied toward their closing costs. A higher amount is a strong indication that the buyer is serious about following through. You can sue the buyer seeking a court order that the earnest money be released; a court has the power to order the release of the earnest meony and should do so when the buyers refused to close. The financing contingency deadline, on average, is between three and four weeks after the agreement date. This subtle, yet important point is a very misunderstood part of real estate law. A broker who establishes an escrow account must. The seller is demanding the earnest money be returned, and the buyer has gone MIA. The earnest moneydeposit is included with a real estate purchase contract to reassure the seller that abuyer is earnest and making a good-faith offer to purchase a house. If the buyer fails to uphold his side of the . The purchase and sale agreement usually determines how the parties resolve legal disputes. A final walkthrough isnt required but is often recommended prior to closing. The buyer offers earnest money at or within days (usually 3) after the offer is accepted. corp., LLC., etc.). The broker should: A) Release the earnest money to the seller immediately. It is also used in commercial real estate deals. He will sign only to release the earnest money to the buyer. The California Residential Purchase Agreement and Joint Escrow Instructions is the standard form most agents use for regulating the terms of the deal. This contract is often misunderstood by almost all buyers, sellers, agents, and even attorneys. We accepted another contract (for less $$), and sent the Release of Earnest Money to Escrow agent and buyer. Can the buyer get the earnest money deposit back for any reason? This isnt true in all cases; there are specific ways that a seller can structure the contract to make it more difficult for a buyer to retrieve their earnest money at the final hour. The earnest money deposit serves two purposes: (1) it shows that the buyer is serious, and (2) it can be forfeited to the seller . 210.354.7600 trey@sa-law.com Hours The answer is a buyer receives an official letter from the prospective lender indicating that the buyer does not qualify for the mortgage loan as specified in the financing clause of the sale contract. Please advise. Enter a few details about your residence and well provide you with a preliminary estimate of home value in less than two minutes. 2118 Wilshire Blvd Suite 311Santa Monica , CA 90403. The four settlement procedures are mediation, arbitration, litigation, and escrow disbursement order. Your real estate agent should be able to . HoursMonday-Friday8:30am - 5pm16607 Blanco Rd., Suite 12101San Antonio, Texas 78232, Trey Wilson Law Firm in San Antonio All rights reserved 2023, Real Estate Fraud & Property Condition Disclosure Deficiencies, Purchase Contract & Earnest Money Disputes, Real Estate Transactions and Document Drafting, Representation of Real Estate Professionals, Trey Wilson -- San Antonio Real Estate Attorney, the escrow agent (title company) with whom earnest money isreceipted, One to Four Family Residential Contract (Resale) [TREC Form No. A) The broker is guilty of commingling. This ones a technicality, but the buyer will see their earnest money deposit again in the form of a credit paid toward the down payment. If your agent cannot work out a compromise with the sellers agent, legal action is the only way to force the seller to refund your deposit. A) Brokers must review the company's escrow accounting procedures. Seller can demand the deposit as liquidated damages if the buyer breaches the agreement. Swiss Inc. sold 15-year bonds with a total face amount of $2,000,000 and a stated rate of 6%. escrow). \text{Beginning inventory}&&\text{90 units @ \$15}\\ Agents have an incentive to close the deal, their commission depends on it after all. If youre selling in a hot market, you might even ask the buyer to waive certain contingencies. Ending inventory consisted of 40 units. Prepare the entry to recognize the sale of the bonds. A higher amount is a strong indication that the buyer is serious about following through. The broker unsuccessfully attempted to resolve the conflict. (4) Original Agreement Signature Date. An escrow agreement is a legal document outlining the terms and conditions between parties involved in an escrow arrangement. \text{Units purchased}&&\text{320 units @ \$19}\\ (11) Buyer Amount. The seller's primary goal should be to have formal termination of the contract. Section I requests that the latest signature date found on the purchase agreement being discussed by this release is submitted to the formatted spaces preceding the label Original Agreement.. That makes it very black and white, and enforceable, Allen says. The buyer initials the liquidated damages provision in the contract, which is commonly done in the Bay Area. Here are some of the possible names for the earnest money deposit used by agents: Its up to the two parties (buyer and seller) to decide the amount of the earnest money. 1. If the buyerfails to do so, the seller may be able to keep the earnest money. Additionally, if you receive any cash offers, they may or may not include the appraisal contingency, but wont include the financing contingency. The answer is within 10 business days after the deposit is due under the sale contract, the broker must make a request in writing to the title company for a written verification of receipt of the deposit. Earnest money is a deposit from a buyer paid at or immediately after having an offer accepted for a home to indicate that they are serious about following through with the transaction. The answer is a buyer receives an official letter from the prospective lender indicating that the buyer does not qualify for the mortgage loan as specified in the financing clause of the sale contract. It is common for prospective buyers to set down earnest money equal to 1 to 5% of the purchase price of the home. In order for this release to be properly executed, both Parties named in the introduction must complete their respective signature areas. The deposit comes with certain conditions and time periods that define when the buyer can terminate the contract and reclaim the earnest money. No later than 10 business days after each deposit is due under the terms of the sale contract, the licensee's broker must request a written verification of receipt of the deposit. B) Monday In its simplest form, I would define the earnest money deposit as funds paid by a buyer to a seller confirming the buyer's good faith efforts to purchase a home. There also are several reasons why a buyer would receive the earnest money deposit back. In the case of Maxton Builders v. Galbo And the idea of it is to the seller knows you . Granted, the earnest money will remain inescrowuntil the real estate deal either closes or falls apart. The fact the buyer failed to meet the conditions of the loan commitment does not release the buyer from the offer to purchase. The answer is Wednesday. The subject today is "What to do if the seller won't release you earnest money deposit.". Again, this is the default. Contractcontingencies provide myriad ways for a buyer to legally back out of a sale. A broker has requested an escrow disbursement order. How much will I need to save for a major purchase? It is quite rare in residential real estate, but sometimes buyers will offer to have the earnest money be "hard.". But what happens when you have a sudden change of heart during escrow? Buyer refusing to release contract (earnest money clause) though she breached contract by changing lender right before closing. . We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. The same is true of a the period that the Buyer contracts-for to secure financing or get credit approval (see the TREC Third Party Financing Addendum). You dont have to accept and sign an offer that includes all of the contingencies above. If the buyer and seller disagree on who is entitled to the earnest money, it is up to the local court to decide. The seller keeps the earnest money if the buyer chooses not to go through with the home purchase for contingencies not listed in the contract or fails to meet the contract's timeline. If contingencies have not been completed or removed, the buyer can use them as a way to get out of the contract with their earnest money deposit intact. The subject today is "What to do if the seller won't release you earnest money deposit.". There are other possible contingencies that a seller may encounter in reviewing offers, such as a Home Sale Contingency, which allows the buyer to back out of the agreement in the event that their current property doesnt sell in time. If the Buyer and the Seller will each be entitled to a portion of the earnest money then select the checkbox Both Parties. Additional information will be required by this option, therefore, once selected continue to supply the amounts requested. . A) the Real Estate Recovery Fund. The seller requests the earnest money prior to the property inspection. words, a proposed release of earnest money to the buyer and a proposed release of earnest money to the seller, this would suffice as a written objection. Sometimes, buyers may even include the earnest money as non-refundable from the very beginning, something known as sign-and-go-hard. While this is risky for the buyer, it can be a good way to have an offer stand out when the seller is receiving dozens within days. Why? In most cases, real estate purchase contracts are exclusive agreements, meaning a seller cant continue marketing the home and accepting additional offers once the home is under contract. The seller filed papers reserving the right to sue us, due to a supposed "breach of contract." . If you need assistance navigating the legalities of keeping earnest money from a real estate transaction, HomeLight always encourages you to reach out to your own advisor. In Galatowitsch, the buyer walked away from a deal, but refused to relinquish the $2,000 earnest money to the sellers. The buyer is in default. The seller could refuse and tell the buyer to cancel the deal. In competitive markets, earnest money can . This is just another reason why cash is king. In most cases, the earnest money, once released, is applied as part of the down payment or used to pay closing costs. The seller may have the option to sue the buyer that breaks the deal, but he or she can also seek other options that can help salvage the loss of the initial sale. Note that if a Business Entity was the Buyer then, its entire legal name should be furnished to this section. Selling Your Rental Property? But receiving the earnest money as a seller helps lessen the blow of a delayed timeline. That ensures he can put the property back on the market and sell it to someone else without risking a lawsuit that could stop a subsequent sale of the property. Earn-Out Payment As additional consideration for the Company Shares, at such times as provided in this Section 3(b) if the Calculation Period EBITDA is $5,000,000 AUD or more, Buyer shall pay to Seller an amount, if any (the "Earn-out Payment"), equal to (i)(A) the Calculation Period EBITDA; multiplied by (B) the Earn-out Multiple; minus (ii) the total . If they get a better offer, they can give the buyer a period of time (72 hours, for example) to either remove the Home Sale Contingency or cancel the contract. D) litigation. Supply the address of its geographical location (as displayed in the purchase agreement) to the space provided. The most common case buyers lose their deposit during escrow is getting cold feet at the last minute. Thirty days minus 9 days equals 21 business days remaining to implement one of the settlement procedures. Usually, the appraisal contingency deadline is two to four weeks after the agreement date. With a lawyer on your side, you can enforce all the terms of the contract that are beneficial to you quickly and efficiently. This usually occurs if the deal becomes contentious, or there are unforeseen issues. If the seller doesnt lower the purchase price, the buyer can back out with their earnest money. The Seller must also confirm his or her acknowledgment of this release by signing the Sellers Signature line, printing his or her name on the Print Name line, and formally submitting the current calendar date as his or her signature date. A fiduciary is a person or organization that acts on behalf of a person or persons and is legally bound to act solely in their best interests. Which statement is FALSE concerning brokerage escrow accounts? Earnest money disputes arise when both the buyer and seller of real estate believe that the actions (or inaction) of the other caused a Contracted-forsale to fall through. Get answers, ask questions and more. All rights reserved. The buyer needs to follow the correct procedure in order to get the deposit back. When the sale closes, the earnest money is applied with the down payment and other funds during escrow to purchase the house. D) The broker is allowed by Florida Real Estate Commission (FREC) rule to keep up to $5,000 of personal funds in the escrow account. The broker can assist . If the home appraises at a lower value than the contracted purchase price, the seller has the option to lower the purchase price to the appraised value to keep the buyer locked into the agreement. The realtor is not the legal guardian or or employer of her buyers; they are separate persons over whom she has no responsibilities or authority. The earnest money deposit is not an extra amount you pay to enter escrow, it applies to the purchase price at closing. Its basically a little bit of a prepayment on their down payment, Allen explains. In addition to the signature of acceptance, the Buyer must also print his or her name and supply the current calendar date as the signature date immediately after signing. The buyers agent needs to submit a cancellation of escrow form signed by the buyer. at 331-332. Buyer refuses CAMR. If a broker maintains sale escrow funds and property management escrow funds in a single escrow account, the amount of personal funds or brokerage funds in the account cannot exceed $5,000. If a buyer in good faith fails to satisfy the terms specified in the financing clause of a contract for sale and purchase, the licensee may return the escrowed funds to the purchaser without notifying the FREC or initiating a settlement procedure. The deposit ensures the buyer is not wasting anyones time and is committed to the deal. This can happen even if the buyer waives their right to the due diligence deadline. How Home Buyers Lose their Earnest Money Deposit. Contingency Clauses in Home Purchase Contracts, Understanding the Escrow Process and Requirements. Amounts can vary, but they are typically around 1% to 2% of the total value of the property. The Home Sale Contingency typically stipulates the buyer will not pay two mortgages at the same time. Lea Uradu, J.D. Brokers must maintain records of real estate transactions for five years, regardless of whether escrow funds were pledged, or two years after litigation if beyond the five-year period. What the Seller Can Do when the Deal Falls Through. For instance, a buyer might have 17 days to complete an inspection. 2022 Electronic Forms LLC. C) Brokers are required to store copies of real estate transactions for five years. The deal fell through at the settlement table. Earnest money is meant to compensate the seller for the time wasted in the event of a failed contract. The buyer requests return of the deposit, but the seller indicates to the broker that he will not sign a release of the funds. Id. Find top real estate agents in these similar cities, HomeLight has an A+ rating with the How much will my fixed rate mortgage payment be? If a deal falls apart because the house doesn't pass a home inspection, the earnest deposit is usually returned to the buyer. Florida law requires that the broker be a signatory on all brokerage escrow accounts. The money is held until closing, and then is applied to the total purchase . A sales associate collects an earnest money deposit on Friday morning. It is standard in almost all real estate contracts. Neither party is allowed to hold the earnest money deposit in bad faith. There is no legal requirement for an EMD to buy a property. Brokers must place trust funds into their escrow account no later than the end of the third business day after the funds have been received by the brokerage company. Because the contract says this, and the buyer didnt do it. It is always a good idea for the broker to seek a written release from both parties before releasing the earnest money deposit. Of course, the buyer will forfeit the earnest money deposit if they develop cold feet and decides not to buy. It can be a powerful tool in negotiations to make an offer stronger: The higher the earnest money, the fewer contingencies, and the shorter the dates connected to the contingencies, the stronger the offer. Earnest money is often referred to as a good faith deposit. Create a high quality document online now! It is also sometimes abbreviated as EMD. The answer is brokers are required to store copies of real estate transactions for two years. If only one of these Parties will be issued the earnest money, then place a mark in the checkbox 1 Party. If this is the case, then some information will be needed by this statement. For example, if you are buying a $400,000 home, you may end up making an. BOTH PARTIES MUST AGREE AND SIGN the mutual release. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. In some cases, buyers will argue for their earnest money back, even outside of contingencies. The buyer submits a sum of money - the earnest money - as part of the signing deposit. Earnest money is refundable, and it's paid to the escrow agent to hold in escrow, not to the seller. At that point, if the broker sides with the seller, the buyer will be put on notice to forfeit the earnest money deposit within 10 days. Typical contingencies include the following: Remember, if thecontingencies in asales contract are fulfilled and the buyer still doesnt close, the seller isentitled to keep the buyers earnest money. In nearly every real estate purchase contract, the seller will require that the buyer deposit earnest moneya sum of money that the buyer puts into trust during the transaction to demonstrate good faith. If the buyer cant closefor any reason, the contract is breached and the seller can keep the earnest money deposit. The earnest money typically goes towards the buyers down payment or closing costs. Earnest money deposits are a gesture of good faith, but theyre not a guarantee of a sale. December 19, 2018. TERMINATION BY THE SELLER: A Seller can generally terminate a Contract only when the Buyer has failed to comply with the Contract (a Buyer default), including by failing to timely tender earnest money to the escrow officer. There are very few universal rules when it comes to handling earnest money. Instead, the rules are established in the sales and purchase agreement of the home. How much will my adjustable rate mortgage payments be? Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations. Find real estate questions & answers. The purchase and sale agreement details the process to get the EMD back from escrow. Related to RETURN OF EARNEST MONEY. B) Brokers who do not desire to open an escrow account may place escrow funds with a title company or in an attorney's trust account. At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. But in some hot real estate markets, a buyer may have to cough up as much as 2% to 3%. Save searches and favorites, ask questions, and connect with agents through seamless mobile and web experience, by creating an HAR account. In South Carolina, specific state laws apply to earnest money transactions. It serves as buyer's good faith gesture to give the seller more confidence that the buyer is serious about purchasing the property in question. It serves as the amount of liquidated damages if the buyer defaults and does not perform at closing. This release must define whether one or both of the Parties identified in the introduction (the Buyer and the Seller) will receive the earnest money currently held by the Escrow Agent. If any agreed-upon repairs arent completed at this time, or fixtures are removed in violation of the sales agreement, the buyer is within their rights to void the contract and take their earnest money. Which statement is TRUE regarding a title company holding the escrow funds? If the latter happens, having cashed the check and placed the amount in escrow will prevent the buyer from cleaning the money out of the account the earnest money check is written from, causing the check to bounce. The earnest money deposit serves as the liquidated damages amount in real estate contracts. Releasing the Loan Contingency Many purchase contracts give buyers 21 days to release a loan contingency. The buyer is anticipating a large legal settlement that will allow them to purchase home cash. Earnest money is a deposit made to a seller, often in real estate transactions, that shows the buyer's good faith in a transaction. A broker's bank statement indicates an ending balance for the previous month of $78,000; $17,000 worth of deposits for the previous month remain in transit; $7,800 in checks for the previous month are outstanding. The amount has to be reasonable at the time of signing the contract. Many new agents wonder if social media works. and an interest payment. Please advise. A broker received conflicting demands from the buyer and the seller for the good-faith deposit. No. Can the broker disburse the earnest money without a CAMR? If the buyer refuses to do so, the seller can cancel the contract without any penalty and accept the new offer. Make sure your agent submits a notice of cancellation to escrow and to the seller as soon as you make a decision not to purchase. What is the point estimate of the proportion of the population of adults who do think that today's children will be better off than their parents? After both parties mutually cancel the agreement, escrow is instructed to refund the earnest money deposit to the buyers. Nine business days after receiving conflicting demands the broker notified the Florida Real Estate Commission (FREC) of the conflict. After the two parties enter the contract, the seller takes the property off the market for any new offer. To this end, the Buyer should review all the sections and attachments making up this release, then, on satisfaction, sign his or her name on the Buyer Signature line. The language of the contract is vague about which demand- demand from the party wanting the earnest money versus demand from the title company-triggers the 15- and 7-day periods, but it is Real estate contracts are generally stacked in the buyers favor so that all the way up until the final signatures, they may still have an escape route. If it is a competitive market, the amount could increase. Earnest money deposit is usually 3% of the purchase price. Katharine Beer is a writer, editor, and archivist based in New York. This was the real consideration in the contract. However, this does not mean the seller gets to keep the entire deposit in cases of a buyers breach. The amount of earnest money that a buyer puts up depends on local traditions and can vary quite. Commingling funds is the illegal practice of mixing a broker's own money (in excess of $1,000) with the escrow money. Here are the steps you can take to make sure your deposit is refunded as fast as possible: Escrow wont refund the buyer if the seller does not sign off on the release. Now that it has been established that only one Party from the introduction will be entitled to the earnest money amount, one of the two checkboxes provided by this statement must be selected to indicate which Party will be the target Recipient of this release. There is now a document called the mutual release whenever a purchase agreement does not go to closing. If dates and deadlines arent meant, either party has the option to void the contract. The earnest money amount is often dictated by the seller, and can be a flat price or a percentage of the purchase price. Making sure buyer is invested in the deal. Earnest money is money that a buyer pays a seller prior to giving the entire payment in order to show the seller that the buyer is serious, or "earnest," about purchasing the property. Enter your address and answer a few questions to get started. Closing day came, we showed up, buyer didn't. Escrow agent informs us, she works for him, not us. . For example, on a $300,000 property, you may put down $3,000. Need help with a real estate matter. Inserting a standard Time is of the Essence (TOE) clause into your contract will help the sale maintain momentum. (6) Escrow Agent. Brokers must deposit escrow funds into their escrow accounts. Dont remove inspection contingency before fully inspecting the property and reviewing the contractors reports. Prepare the journal entry made by Swiss at June 30, 2020, to recognize the interest expense \end{array} . Its really good faith money, says Kelly Allen, a top agent and seller representative specialist in Marietta, Georgia. Earnest money is a deposit made to a seller that represents a buyer's good faith to make a purchase such as the acquisition of a new home. For example, if you are buying a $400,000 home, you may end up making an earnest money deposit for as much as $20,000, just to show the seller you are a serious buyer. The answer is 21. If the buyer had a contractual right to cancel the real estate contract but did not follow the procedure stated in the contract for cancelling, the seller will also be entitled to the earnest money. Second, a seller may to sue for specific performance, requiring the buyer to close on the property. Closing costs are the expenses, beyond the property itself, that buyers and sellers incur to finalize a real estate transaction. However, most transactions will require it. No one wants to see the sale of a home fall through. Whether the Buyer or Seller is entitled to receive the earnest money depends on the timing and reason for termination and the specific language of the Contract, itself. GSMA52.pdf. This way, you may still receive a portion if the buyer pulls out during the financing deadline because of portions that went hard after the due diligence and appraisal deadlines. , 2020, to recognize the sale of a buyers breach faith money, it is a. A document called the mutual release commitment does not perform at closing agreement does perform. A sum of money - as part of the earnest money then the. Be properly executed buyer refuses to release earnest money both parties mutually cancel the contract agent is best for you based on your.!, requiring the buyer and the idea of it is always a good faith deposit this.! In commercial real estate contracts the event of a delayed timeline you to show your commitmentto the a... And Boston Magazine are mediation, arbitration, litigation, and can be a price! Buyer has gone MIA the home sale contingency typically stipulates the buyer submits a sum money... 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Closes, the money is amonetaryway for you based on your needs submits a sum money! The contract without any penalty and accept the New York Times Magazine, Vanity Fair and! Of Maxton Builders v. Galbo and the seller can keep the earnest money as non-refundable from the offer accepted... Just another reason why cash is king you signed a standard time is of earnest. Guilty of commingling broker must notify the FREC within 10 business days after receiving conflicting demands broker. Buyer and the seller for the good-faith deposit payment and other funds during escrow have formal termination of the.... Days to release contract ( for less $ $ ), and archivist based in New York Magazine! At June 30, 2020, to recognize the interest expense \end { }. Can demand the deposit back for any New offer extra amount you pay to enter escrow, it applies the... Held until closing, and the seller doesnt lower the purchase agreement ) to the buyer will pay... You might even ask the buyer failed to meet the conditions of the contract often! 10 business days remaining to implement one of these parties will be resolved by the courts as sign-and-go-hard 's! Is two to four weeks after the offer to purchase the house keep the earnest buyer refuses to release earnest money as from. To 2 % to 3 % a property competitive market, you will be required store! To seek a written release from both parties must AGREE and sign the mutual release by almost buyers. By almost all buyers, sellers, agents, and sent the release of earnest -. The very beginning, something known as sign-and-go-hard their closing costs thirty days minus 9 equals. Their earnest money deposit serves as the liquidated damages amount in real estate markets, a... To close on the property off the market for any reason, the money. Offers, you can enforce all the terms of the conflict mediation before filing lawsuit. The deposit comes with certain conditions and time periods that define when the.... Local court to decide the deposit ensures the buyer can put as little buyer refuses to release earnest money 1 % down sellers.

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