I have a recent deal that is hanging on by a thread. I've written about it several weeks ago in I Now Pronouce You Seller and Husband, and while we thought we had ironed out the 
problems it seems that more have surfaced.
A seller getting cold feet and changing her mind is one thing.
... Refusing to sign a release is another.
Luckily, my buyers are very reasonable people, and we've just found another home for them which we put under agreement this weekend. Still, it would be nice to have their escrow deposit returned from the "Let's Not Make a Deal" seller behind curtain #1.
I believe the seller would have signed the release of escrow, if the broker had not tossed in a letter telling her that they are suing her for their comission because she refuses to sell the house. Granted, they have every right to do so, but it should be done AFTER the release and termination forms are signed. So, now she is refusing to sign anything.
We'll go to court if we have to, but before we get that far we thought we'd try something a little different. My buyers, not hearing any updates from the listing office for weeks, decided (with my and my broker's encouragement) to write the seller a letter directly. And, it worked! They wrote a heartfelt letter about how they understand her circumstances (which I won't go into here) and how they would really like to work with her but at this point they need to move on. They asked her to please sign the escrow release, and included a copy of the document. They also included a self-addressed stamped envelope.
As a last minute thought, they added their cell phone number in the letter just in case she decided she wanted to talk to them. And guess what? She called them the next day. Receiving the letter was appreciated, and she explained to them (just as I suspected) that the listing broker is threatening to sue for commission. She understands now that the buyers have nothing to do with that, as it is between her and her agent and broker. She agreed to sign the release and will mail it to them.
We did let her know, of course, that we would take her to court if necessary -- hey, I'm no pushover -- but it seems that won't be the road we'll be needing to take. Whatever happens now is between her and her broker, who should have done a better job of trying to keep the lines of communication open for all parties.
They shut the door on her, she shut the door on them, and the buyer and I were left standing outside on our own.
Luckily, we found another doorway to enter, and it seems things will work out.
And, we are in escrow for another home - so all is good!
I admit that I have a gripe about how this was handled, and the broker was far more interested in his comission than in getting a release signed and communicating to all parties. Not my problem, as long as my buyers are free to move on.
I feel that this is a prime example that everything happens for a reason, we may not know the reason why today, tomorrow, or ever, but I am a firm believer in that. And it is great that your buyers got their money back, also an example of kindness paying off as well...(your buyers being kind and writing) Great post, brings it to the forefront that these types of things are happening in this market.
Thanks and Good Luck!
I told my wife the other day, that we were going to see the ugly side of real estate because the market is slow and agents are not getting paid. I hear more and more of the ugly side here everyday. I know it was going on during the good times but people let things go because there was always another home to sale.
Sounds like the other broker really jumped the gun.
Sharon - sometimes you just have to think out of the box and make things happen. Luckily, my buyers are investors and were not emotionally attached to the house, or we could have had a different outcome!
Ron - I've been seeing the same thing for a long time. The nastiness is coming out.
Carol - I agree completely!
So nice when a little sugar helps out! Glad this is working out for you!
Jeannie, in these situations a broker (or an agent) has to decide whether they want to make a Federal case of it. It was probably bad judgment for the broker to threaten to sue the seller before considering the plight of the buyer whose deposit was being held hostage.