Home Buying in 91775>Question Details

First Time B…, Home Buyer in Temple City, CA

Can a seller back out the deal after the buyer pays the earnest deposit?

Asked by First Time Buyter, Temple City, CA Thu Mar 21, 2013

One of the contingencies we have in counteroffer is that the seller is contingent on finding home purchase of choice and closing concurrently. If we have a contingency like this, typically when could we start the escrow? What's the reasonable time that we should give to the seller to find the new home? Also can the seller back out the deal if he could not find a new home after we have have paid the deposit already? Thanks!

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If we have a contingency like this, typically when could we start the escrow? Immediately after accepted offer
What's the reasonable time that we should give to the seller to find the new home? Whatever you choose, but make sure you write it clearly in the contract.
Also can the seller back out the deal if he could not find a new home after we have have paid the deposit already? Yes, if within the contract terms. Your deposit will be returned.
0 votes Thank Flag Link Sun Mar 24, 2013
Hi First Time Buyer,

Escrow should be opened as soon as your offer is accepted and all parties have signed the contract. Since you state you've already paid the ernest money deposit, this tells me escrow is open.

If your contract doesn't state a 'time limit' on the seller finding a new home, you might want to see about doing an addendum to the contract setting a time limit. Otherwise, they could take as much time as they want and/or need.

Yes, the seller can back out of the deal if they don't find a new home. This is why they have the contingency. You should get your ernest money deposit back if this happens - this should be stated in the contract you signed.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu Mar 21, 2013
As soon as offer is accepted.... the next question is up to you, how long do you want to wait? Also it is written into the contract as to how much time he has, tthat is an other good question to talk to your agent about...the answer to your next question is yes the seller can.

These are all good questions and who ever is representing you and got you into escrow should be answering these and making sure you are satisfied.

James
0 votes Thank Flag Link Thu Mar 21, 2013
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