Earnest Money Release Problems
Ok, originally, the earnest money deposit was $1000, pretty typical but then things got complicated. Seller signed contract with stucco contractor (during offer negotiations) to have house re-stuccoed. Buyer wants to have a say in color of stucco so seller says ok but need to increase earnest money to $6,000 just in case it doesnt close. deadlines came and went house was not stuccoed in buyers color nor did buyer close. Seller wants to keep full $6000 EM. In meantime she has sold and closed the house to other buyer. Who gets the money?
That is going to depend entirely on the contract. This is a question your title company or title attorney needs to answer.
The contract (instrument) contains "language" which is binding to the parties who agree (sign).
Newbies learn this first lesson, poor contracts with zero legal advice = loss productivity and zero profit.
[addsig]
Or worse . . .
Without knowing any more details than were posted, the guess I'd hazard would be that it would depend on why the buyer didn't close. And, it'll depend on why the seller felt they could just ignore the contract with the first buyer, and sell it to someone else. There was obviously much left out of this story...