Home Buying in Colton>Question Details

Ken Black, Both Buyer and Seller in Colton, CA

I was buying a house, and the bank was dragging its feet on loan approval. i called bank and they said loan

Asked by Ken Black, Colton, CA Tue Jul 8, 2008

is no problem the underwriter is just being thourough. seller made a demand to drop contingencys to continue escrow. I SIGNED. than underwriter came back with a set of rediculas demands such as landscape backyard, before loan approval. seller would not do these things, I was not willing to do these things befor closing of escrow. So I dropped out of sscrow. Now seller wants to keep my $19,000 Deposit.
/Can they do this?

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4
Diane Wheatley, Broker’s answer
What???? That is insane!! Someone or somebody is commiting some unscrupulous acts here to the extent that you are being damaged. You have a serious legal issue here if indeed the seller is refusing to sign over your deposit. And signing over your deposit is the least they can do before you threated to seek punitive and compensatory damages based on a breach of contract and specific performance. Slam dunk legal matter in your favor with malicious intent on their part. Go get em. That makes me raging mad when I hear things like that. Where is your respresentation in all of this?? I'm so sorry. Outrageous!!
1 vote Thank Flag Link Tue Jul 15, 2008
Unfortunately we are on a market that anything will spook the bankers and they will drag it.

Now with the deposit, it should said in you contract if they can keep it.

I had a situation last year and my buyer lost her job after getting a 15 day extension on escrow because the bank took more than 45 days, anyways after a week of going back and forth via email with the REO agent, got to a agreement with the buyer and she had to let go $1000 and she got back $2500, she was not happy but she did not lost all of her money.

Please talk to your agent if not his or her broker.

Good luck

Hector Reyes
0 votes Thank Flag Link Sat Jul 30, 2011
Hi Ken,

I am not a real estate lawyer and you should talk to one. But if you end up in the court you most likely come up winning. In America no one should be forced to sell their homes and no one should be forced to buy one either. And my opinion the judge will feel the same. You have a good reason. You seek the help of a lawyer if you need to and please let me know the outcome. I strongly believe I am correct!

Homa
Broker Associate
Prudential California Realty
0 votes Thank Flag Link Tue Jul 8, 2008
Hi Ken;
Where is your Realtor? Is he or she helping you or giving you any advise? I question signing away all your contingencies.
The law is, if you signed the liquidated damages, portion of your contract, and you breach the contract, which it sounds like you did, the seller is entitled to up to 3% of the bid for the property, but the seller must prove that they were damaged to that amount.
Did you sign the arbitration clause in your contract? This may have to go to arbitration.
I assume the $19,000 is being held in escrow. They will not release it without agreed upon instructions from both sides.
In short, the seller does not just get the money. They have to prove that they were damaged somehow.
Where is your Realtor?
0 votes Thank Flag Link Tue Jul 8, 2008
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