Protecting your client starts with precision on paper. In this case, a sales agent representing a buyer drafted a purchase contract with the option fee and earnest money amounts accidentally flipped. Instead of the intended $500 option fee and $3,750 earnest money, the contract showed $3,750 as the option fee and $500 as earnest money. Both parties signed the contract with the error in place.
The lender later flagged the mistake, and while the agent attempted to correct it with an amendment, the seller refused. The buyer terminated the contract and asked for the $3,750 back as earnest money, but the seller only offered $500—per the written terms. It wasn’t until six months later, and after the buyer hired an attorney, that the seller finally released the $3,750.
The agent has since acknowledged her duty to protect her client’s
interests and to use greater care when preparing contracts. TREC issued a
$500 penalty and formal reprimand, underscoring the importance of being
meticulous when drafting or reviewing contract terms.
