Read All About it: Case Closed!

ontracts

Google these words:  "earnest money dispute-- .23 seconds later you receive "about 159,000 results".  First of all, I never noticed Google using the word "about"  before.  Guess my caring about "about" doesn't make a lot of difference since I won't make it through the first 100,000 results!  Earnest money disputes are basically pretty simple to resolve among reasonable people. 
It is just unfortunate there are times, judges are the only reasonable people. 

Now,  there is a BIG SECRET--regarding earnest money.  You can feel free to share this with the next person who engages you in this oft heated battle.  Secret is:  "whatever the contract says."  There, I said it cause somebody's gotta !                  

Long broker story made short:
           1.  Buyer and seller agree
           2.  Buyer can't get loan
           3.  Seller refuses to release earnest money

I will spare you the many tangled moments of my adventure to and through the court system.  It was somewhat different than expected.  The contract was clear, the buyer could not get the loan.  The contract was contingent upon his ability to qualify.  I did not understand why the seller moved out of the house, and into her soon-to-be-newly purchased home.  That sounded like an expensive risk.  Nobody asked me, or I would have suggested she wait.  But no.  She was adamant that the earnest money be used to reimburse her the moving receipts admitted into evidence. :))  Interesting. 

Then there was the buyer.  He was most broken-hearted.  He wanted the house.  This was not to be.  Ok, he was also a little mad.  Actually, he spent over $1000 in attorney fees trying to recover his $1000 earnest money.  Unfortunate.

The man of honor listened to the stories of each party.  A lot of emotion and a lot of "he said, she said."  The judge was patient; looked at the contract and quietly asked how mediation went.  Both parties admitted, no mediation had happened.  The judge, without hesitation said:  "the contract clearly states you will mediate.  Go mediate and I will see you if it doesn't work out." 

It did not work out.

Fast forward 30 days, same judge, same players.  The judge was informed that mediation did not work out.  He listened politely, one more time as each party confidently defined his position.  The judge then ruled.  The $1000 was returned to the buyer. 

Of course, isn't that what the contract said? 

There I said it, and so did the judge!  Case Closed!