Stellar, Home Buyer in Los Angeles, CA

How to make the seller release the fund?

Asked by Stellar, Los Angeles, CA Sun Nov 28, 2010

I didn't get the loan and had to cancel the purchase contract. The deposit should be refunded to me. however, The seller refuse to release the fund. the deposit is being held. It has been about a month now.
What should I do to get my deposts back?

Can the seller sell the property to another buyer if the concellation between us is not sighned?

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Answers

7
BEST ANSWER
It all comes down to the letter of your agreement wih the seller. immediately schedule a meeting with your Real Estate Agent and ask them to review the loan contingency information with you. If the contract was properly written, you should have a financing contingency, which you have not been able to obtain financing and that should cover you for getting your deposit back. Otherwise you need to consult a Real Estate Attorney. Technically the seller must cancel with you before they can sell to someone else.

Best of luck to you.
0 votes Thank Flag Link Sun Nov 28, 2010
Your Realtor should be answering this question for you. Did your Realtor write up the offer with a loan contingency to be in place until the loan was funded or did they have you remove the loan contingency? I think it’s time to get the Broker of the company involved or get an attorney quickly…I think you can file a lien on the house for the amount of your deposit plus your attorney fees…this way if they do sell, you’ll get your money...if they are using a reputable escrow company that escrow officer will not open another escrow until your deposit is returned…but nothing can prevent the seller from going to another escrow company and opening escrow there.

By the way, regardless of whether you are being represented by the same agent that is representing the seller—that agent owes you a fiduciary duty to look out for your best interest. In my 23 years of being a Realtor, I have sold many homes where I am both the listing and selling agent and have never had any problems. When you are a professional real estate practitioner—you know how to handle both sides in an honest, ethical and diligent manner, and never loose sight of what your fiduciary duties are—well at least that is how I operate.

Good luck and I hope all turns out well for you.
Aida Pinto
Real Estate Broker
Realtor since 1987
(562) 916-3237

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http://www.ReoLicensedSpecialist.com

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0 votes Thank Flag Link Wed Dec 1, 2010
Assuming you canceled within your contingency period, have your attorney send the seller a letter. Works just about every time.

Good luck!
Chris Blasic
0 votes Thank Flag Link Sun Nov 28, 2010
Hi, Stellar,

I have been following your questions on Trulia.com. You are obviously at odds with the seller and in dispute about the release of the deposit. Don’t you have an agent who is advising you? Your questions are not the difficult to answer. All of the answers to all of your questions could have been supplied by your agent. Probably were if you have an agent. Are you looking for different answers because you don’t like the information that your agent and the on-line community are providing? On the other hand, if you are using the seller’s agent as your agent, this is a great learning experience for you and for other readers as to why you should, in most cases, have your own agent who looks after your interests and is not spending time trying to serve two masters.

My advice:
1. Listen to your agent’s advice…assuming that it is from your agent and not a dual agent.
2. If you don’t like what you are hearing from your agent, then seek legal advice although I don’t think that advice will be vastly different and it will carry its own cost.
0 votes Thank Flag Link Sun Nov 28, 2010
The seller cannot sell the property if he/she has not completely cancelled escrow with you. Now is this property a short sale? If it is, did the seller have a short sale approval letter dated before you cancelled? If not there is no deal because there was never an approval to begin with.

Now if the property was a regular sale, how long in to the contract were you? Did you remove your contingencies in writing? All of these questions should be answered by your agent. This is why you should have an agent that will protect your interests. Look for another agent if this agent is not helping you.

Dyanna
0 votes Thank Flag Link Sun Nov 28, 2010
If your cancellation of the deal fell within the "protected" period (usually 17 days to release all contingencies), you should be able to get your deposit back. However, if your contract outlines the deposit agreement differently, you'll need to abide by the wording of the contract.

Ask your RE agent to go to bat for you on this, if you are indeed eligible to get your deposit back. If that doesn't help, then you do need to see a RE attorney. Your arrangement with him or her shoud include an agreement that legal fees are to be paid by the seller (who is causing the problem). Good luck!
0 votes Thank Flag Link Sun Nov 28, 2010
It's time to speak with a real-estate attorney.
0 votes Thank Flag Link Sun Nov 28, 2010
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