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  1. #1
    Join Date
    Nov 2010
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    Default Earnest Money After a Real Estate Transaction Falls Through

    My question involves real estate located in the State of: Colorado

    We recently had a real estate transaction fall through. It was listed through a Realtor. Earnest Money was collected and is currently held at a Trust Company.

    The Realtor is claiming that his firm is entitled to half of the Earnest Money Deposit.

    He is trying to get me to sign a "Earnest Money Release" form that splits the Money payable to me, and the second part to his firm.

    Additionally he claims that this is a "Forfeiture of Payment", and that the deposit is split.

    Is it typical for the Earnest Money to be split between the Seller, and the Realtors ?

  2. #2
    Join Date
    Sep 2010
    Posts
    19,063

    Default Re: Ernest Money

    Depends on why it fell apart. The realtor may or may not be entitled to their commission.

  3. #3
    Join Date
    Nov 2010
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    2

    Default Re: Ernest Money

    Quote Quoting flyingron
    View Post
    Depends on why it fell apart. The realtor may or may not be entitled to their commission.
    The deal fell apart, because they could not secure financing.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,063

    Default Re: Ernest Money

    You'll have to read your listing contract. Usually, they have to provide a negotiated sales contract with the buyer who was able to close before they are due any commission.

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