Home Buying in 94015>Question Details

Mary Wang, Home Buyer in San Francisco, CA

Can I file a lawsuit even though I initialed P7 on CAR Purchase agreement Item26 A&B(Mediation and Arbitration)?

Asked by Mary Wang, San Francisco, CA Tue Mar 5, 2013

I had a contract purchasing a property in Daly City, I had not removed the loan contingency because I didn't get loan approval. I signed release form(CAR form CC), but seller refused to sign. My EMD is still in escrow company. Can I file a lawsuit?

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5
What would you sue for? If your EMD is at the escrow company, you just need to get the listing agent to have the seller sign off.

And, if you do file an lawsuit against the seller, you would risk having to pay for the seller's legal fees if you lose the case. In that case, we're probably looking at a bill for $50-100K.
Web Reference: http://www.archershomes.com
2 votes Thank Flag Link Tue Mar 5, 2013
The seller's agent is mistaken. If the seller wishes to sell to another party, they need you to sign off on the cancellation. So, you can actually hold up their sale. In that case, it's in their interest to release your deposit. As others have mentioned, whether you should file a suit or not is something you can discuss with an attorney.
Flag Mon Mar 18, 2013
But the seller is refusing to sign, and also the seller's agent said they have right to sell the house to other people without signing off. The reason I want to file lawsuit is I can file Lis Pendens.
Flag Tue Mar 5, 2013
Hi Mary - Anybody can sue for anything. Whether or not it's a good idea is something you should talk to a real estate attorney about.

Here's a great resource for you.

Michelle Leu Zaccone
Attorney
330 Primrose Road, Suite 504
Burlingame, CA 94010
P: 650.393.5859
http://www.zacconelaw.com

Best regards
Vicki
1 vote Thank Flag Link Wed Mar 6, 2013
Sometimes sellers get angry and threaten to withhold deposits. From what you say it seems they have no grounds to keep it. This has happened to me twice in my career, and in both cases the other agent worked on his sellers and I counseled my buyers to give it a week or so for them to calm down. In both cases they signed the cancellation after cooling off.

There is no upside to suing. If they won't sign, go through mediation. The mediators are very good at getting those in the wrong to see the error of their ways and it will cost you a lot less.
1 vote Thank Flag Link Wed Mar 6, 2013
Why don't you just go to mediation. It should be less costly and it sounds like you should win
1 vote Thank Flag Link Wed Mar 6, 2013
Thank you for your question, Mary:

You state that you never removed your loan contingency because you did not get loan approval. Based on your statement, you have a very strong case to have your deposit released back to you.

The seller would be wise to sign the documents to direct the title company to release your deposit back to you. The seller can be forced to pay penalties if the seller unreasonably refuses to sign the necessary papers to release your deposit back to you.

Mediation and if necessary, arbitration is much quicker and lower cost than a lawsuit. The legal fees from a lawsuit would probably be more than the amount of the deposit.

I recommend that you start with mediation first, and if that is unsuccessful, then go to Arbitration. You will probably win.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
.
0 votes Thank Flag Link Sun Mar 17, 2013
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