How to make a claim for the earnest money deposit
Purchase Sales Contract for Real Estate: Dispute over Earnest Money!
Disputes over earnest money may arise when either a buyer or seller believes the other to be at fault for failing to close in a timely manner.
Whatever the cause, paragraphs 18.C through E of the TREC One to Four Family Residential Contract address the procedure for release of earnest money.
Upon failure of the contract, the party desiring the earnest money must make a written demand upon the escrow agent. The written demand triggers a 15-day window during which the other party may make written objection to the escrow agent. The escrow agent will follow up with a notice of its own that written demand has been made and enclosing a release form for signature. It must be signed by all parties and their brokers.