Well I was working as a buyer's agent with a young sweet couple. We found them a townhome to buy in the first 5 homes we looked at. We put in an offer and did $1000 earnest money. Offer accepted. About a week after earnest money was turned in, the couple asked me if I knew if it had cleared yet. I told them it will the title company has it. Everything went smoothly thru closing. We went over the HUD the earnest money was credited back to the buyers, good to go.
So two days later I get a call from the selling agent. He calls me frantic because they took $1000 out of his commission. I had delivered the earnest money check to him, per his request. He then sent it to the the title company which was about 1 hour away from us, via mail. They were telling him they never recieved it and so they took it from him. He called me to see if my clients could see if it cleared. I called them and it hadn't. So they were concerned because they thought it was all said and done, hadn't paid attention if it had cleared. They were buying stuff for the house.
I called my managing broker and this is where it would have stood.
My clients signed a contract saying they were giving the $1000 earnest money. They delivered their part. Ethically speaking they should void the first check and give the seller's agent the 2nd one.
But, if they no longer have the money or feel that they closed, HUD reflected they paid it, then legally it isn't their responsibility. Then the title company and seller's agent have to figure it out.
However, a day later the title company ended up finding the check. We called my clients they said it was clear to be deposited and it was all taken care of.
It was a good experience and lessoned learned.
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