Another 5k For The Realtor?? De

[warnershaw]

What is the name of your state?I am purchasing a home in the state of Delaware -- as a first time buyer... and the realtor says I have to put a $5,000 deposit down payable to him (not an escrow account)... even though i have the commitment papers and sale for the 100% financing as a first time buyer. Is this right? He says it is the law in DE and that the money will be returned to me at settlement in less than 5 weeks. thanks,
warnershaw

 

[UNCLEBUCK]

What is the name of your state?I am purchasing a home in the state of Delaware -- as a first time buyer... and the realtor says I have to put a $5,000 deposit down payable to him (not an escrow account)... even though i have the commitment papers and sale for the 100% financing as a first time buyer. Is this right? He says it is the law in DE and that the money will be returned to me at settlement in less than 5 weeks."

warnershaw,

I don't know the answer. I'm responding as no one else has yet. But here's my advice. DO NOT give him ANY money until you have spoken with an Attorney in your area. It may in fact be required for you to do this. However, if it is not, and you pay him the money, my guess is that you will have a very hard time getting it back. (The Broker would likely argue that "You agreed to it") Also, DO NOT listen to anything the Broker has to say regarding the law, as he is not a Lawyer.

 

[BradleyS]

I am a real estate broker in Kansas.

Get Legal Advice immediately.

I would advise you to call the Real Estate Commission in your state as well as the NAR. National Association of REALTORS, Headquarters: 430 North Michigan Avenue, Chicago, IL. 60611-4087 DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020

1-800-874-6500

Hopefully, he is a member. He has to abide by the "Code of Ethics."

Here is a link for a download of the Code of Ethics for your reference.
http://www.realtor.org/mempolweb.nsf/pages/code

I'm not an attorney, but in our state, the real estate commission could terminate a license, impose fines, and make a nice call to the state's attorney general for criminal action for what you are talking about.

I hope this helps, now call an attorney!

 

[seniorjudge]

What is the name of your state?I am purchasing a home in the state of Delaware -- as a first time buyer... and the realtor says I have to put a $5,000 deposit down payable to him (not an escrow account)... even though i have the commitment papers and sale for the 100% financing as a first time buyer. Is this right? He says it is the law in DE and that the money will be returned to me at settlement in less than 5 weeks. thanks,
warnershaw

The real estate agent is a crook.

 

[HomeGuru]

What is the name of your state?I am purchasing a home in the state of Delaware -- as a first time buyer... and the realtor says I have to put a $5,000 deposit down payable to him (not an escrow account)... even though i have the commitment papers and sale for the 100% financing as a first time buyer. Is this right? He says it is the law in DE and that the money will be returned to me at settlement in less than 5 weeks. thanks,
warnershaw

**A: this is very simple. Request that this idiot give you the request in writing and a copy of the law that confirms his statement. Then when you get it, post back.

 

[CA girl]

In California, when a buyer writes an offer, they give a check made out to the brokerage for earnest money. This check says to the seller that the buyer is serious about buying his house. The check is held, uncashed, by the broker until the offer is accepted and then it is placed into escrow. The buyer then has 17 days to complete his inspections. Within that 17 days, the buyer can cancel the contract for any reason and get his entire check back. After the 17 days, if the buyer does not complete the sale, his check could be at risk. If the sale goes through, the check will go toward the buyer's closing costs.

I don't know if this is what they do in Delaware, but it could be that the Realtor did not explain it to you clearly. If you contact the NAR, they should be able to clear things up for you and tell you what your options are.

Good luck to you.

 

[nextwife]

Earnest money, is standard, even with 100% financing. However, the funds are always (in our state) either held by the title company or the RE Brokerage trust Account until closing. Never to the agent personally.

 

[HomeGuru]

Yes, the agent requesting the deposit made directly to him is in violation of several RE licensing laws and Realtor Code of Ethics. In any case, all deposits not going into an escrow or attorney client trust account MUST be written to the brokerage company and not to the agent's personal account.

 

[captainjp]

Don't do it!

I am a Realtor in Delaware and from what I am reading, the agen that you are working with is not telling you the truth. Feel free to contact me if you have another questions at jpperon@comcast.net and I will do what i can to help.

 

[BradleyS]

I am a Realtor in Delaware and from what I am reading, the agen that you are working with is not telling you the truth. Feel free to contact me if you have another questions at jpperon@comcast.net and I will do what i can to help.

Advice to REALTOR in Deleware:

You shouldn't get professionally involved. This individual may have contracted with this agent/broker/REALTOR and you might find yourself violating your own real estate laws and the NAR Code of Ethics. The advice received is sufficient to help this person.

If this doesn't deter you.......then do a web search on, "Tortious interference of a contract." That should put the icing on the cake.