Once Earnest money has been accepted on a property, is a seller locked into that contract?

Question

I placed an offer on a property that the seller verbally accepted. The seller is traveling so they were unable to sign the contract. His real estate agent accepted my earnest money though. After I placed my offer, the seller received a full price offer from someone else. He accepted it and the real estate agent told me they would refund my money. Is this legal? I thought once they accepted my earnest money signature or not we had a legal binding deal? What should I do?

Answer 1

That is why EVERYTHING needs to be in WRITTING .

His agent could have signed an acceptance on the seller's behalf .

IF the house / property is THAT important to you ; you can tell the agent that unless they go ahead and sell the home /property to you ; that you will be filing a lawsuit for "Failure to perform" .

Above all ..while all of this is going on  ; Do NOT accept the Earnest Money refund ect ..... wait until it is setted for sure , one way or the other .

Answer 2

The real estate agent is correct.  Until both parties sign the agreement, there is no contract, verbal comments or not.  Your earnest money will be refunded, and it's time for you to move forward and find another property.

Ignore the advice that the agent could have signed on behalf of the sellers.  That is HIGHLY illegal unless the agent is given legal power of attorney by the seller.  No real estate agent in his/her right mind would sign for a seller or buyer WITHOUT a legal power of attorney to do so.