Escrow cancelled, agreement reached but real estate broker is getting in the way?
Hey all,

   I put good faith money in an escrow deal for a real estate deal. The deal fell through and I tried to get my escrow money back. I came to an agreement with the seller wherein I would get most of the money back and we both signed a settlement agreement and sent it to escrow. When I called escrow the escrow agent is telling me that the buyers real estate broker has sent in a demand for some of the escrow money. 

My understanding is the escrow agreement is between me and the seller, not the real estate broker.  He is the buyer's agent/broker not mine. What do i do?
[{"id": "cfknsec", "text": "Something important here to distinguish is *why* the deal fell through.  If the purchase agreement was signed by both buyer and seller and you just changed your mind sometimes brokers will demand payment for providing a ready, willing and able buyer.  If the contract is all signed, sealed and delivered you can't just say \"I changed my mind\".  Also if the listing was on the MLS, then MLS laws state that commission agreements posted in the MLS are valid, make sense?\n\n&gt;I came to an agreement with the seller wherein I would get most of the money back and we both signed a settlement agreement ...the escrow agent is telling me that the buyers real estate broker has sent in a demand for some of the escrow money. \n\nI'm guessing you're the buyer, but the way you wrote this it's a little confusing.  Is the buyers real estate broker your broker?  If I'm reading this right then it sounds like *your* broker is trying to get *your* deposit a technically legal, yet totally dick move.  If it's your fault the deal fell through then you may lose your earnest money if it's the sellers fault, then you should have no reason to lose a dime.  If both buyer and seller are at fault for the transaction not consummating, then theoretically, both buying and selling brokers are entitled to their commission stated in the listing agreement/mls.  However, if the house has some repair you can't agree on(ie mold) or a disclosure that causes you trouble then you don't owe a dime.  Sooooo, sorry about the ramble, are you the buyer or the seller and why did the deal fall out of escrow?\n\n\n\n**edit**- Just saw that this is commercial real estate subreddit, I thought this was the real estate sub.  Even so, most of what I wrote is still technically true.", "replies": [{"id": "cfkorqi", "text": "Thank you for the response. I'm buyer.  The reason deal fell through is because of a lease contingency. I couldn't obtain the lease I wanted and the lease contingency gave me an out and I took it.  Obviously I had to fight to get it bak but so be it. Now I'm fighting again   \n\n\nThe agent is the sellers agent. I was unrepresented by an agent and now he is claiming to be my agent. (nothing signed). So it sounds like he may be entitled to something.  ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cfkyei3", "text": "It is common for a listing agreement to include language that if a deal does not work out that any escrow funds that go towards the seller be split with the list agent for their services.  Our companies contracts call for a 50/50 split.  If the settlement between you and the seller does not include the list agent if he has those terms in his list agreement then he is in the right to protest the settlement.  For escrow funds to be dispersed a release must be signed detailing the dispersment by all parties having claim to the funds before they can be dispersed.  If one party, in this case the list agent, does not agree with the dispersment the escrow agent can not disperse and will have to file for an interpleader action with the local magistrate to determine how funds are to be dispersed.  ", "replies": [], "depth": 1}, {"id": "cflej1l", "text": "If the seller and seller's agent had a listing agreement, that listing agreement would state that if the agent produced a ready, willing and able buyer (and all contingencies are met), the agent would be entitled to compensation even if the seller opted not to sell. However, in this case, you played your contingency cards right and you both mutually terminated the deal. \n\nAssuming they're expecting you to cough up some of the commissions, it may be more cost effective in this scenario to pay a real estate attorney a few hundred bucks to write a muscle letter to escrow demanding to release your funds.\n\nI've been on almost every side of this situation heh. ", "replies": [{"id": "cflejku", "text": "Also, WAS the property listed on the market? Do you know if they had a listing agreement? ", "replies": [{"id": "cfli8v1", "text": "I don't know their agreement. I agree with the attorney angle. Thanks. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]