Home Buying in 94539>Question Details

d18k20j3, Home Buyer in Fremont, CA

If home close is 1 day past the contract, and the seller cancelled the contract. Can the seller keep the 3% deposit?

Asked by d18k20j3, Fremont, CA Wed Feb 27, 2013

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9
Well said John - For you Buyers out there, get a Realtor to represent you in transaction. You will thank us later.
1 vote Thank Flag Link Thu Feb 28, 2013
You got into this transaction without the benefit of professional guidance – without a REALTOR of your own. You entered into a contract – the terms of which we do not know. As part of your attempt to purchase, you made an escrow deposit to someplace or someone which or who you cannot now say. Now you are looking for free advice about whether or not the other party to your contract can keep your deposit.

WOW!

I agree with Michael. You need the advice of an attorney. Your problem cannot be solved by volunteer opinions obtained over the internet.
1 vote Thank Flag Link Thu Feb 28, 2013
Thanks John. You are totally right. We just thought being neighbor with the seller. Big Lesson!
Flag Thu Feb 28, 2013
I agree with Michael, that you should contact an attorney to answer this question and represent you.
0 votes Thank Flag Link Thu Mar 7, 2013
Agree with John Juarez - to be honest, I cannot fathom why buyers think they can go direct in this type of market - it's a repeat of what happened in 2004-2005 where lawsuits over agency issues multiplied like mushrooms in a damp, dark place …
0 votes Thank Flag Link Thu Mar 7, 2013
Especially in this hot sellers market I see this happen time and again. Take the advise of my peers and you shuold be able to handle it.
0 votes Thank Flag Link Sat Mar 2, 2013
If seller has sent you 'buyer to behave' note before contract deadline and your 'behavior' didn't got corrected and contract passed deadline, I believe seller has legal right to retain some of your deposit to recoup his/her lost time and expense with the house pending instead of going to another buyer.

If your cause of not closing in time was due to lending issue (or any issue), you should cancel contract before loan (or related) contingency deadline, IF you put loan contingency in your CAR standard contract IF you use one.

'Buyer to behave' note doesn't need your signature to 'agree' and escrow instructions follow the purchase contract you both signed in the very beginning.

Being said that, if you hire an attorney and keep arguing with seller, then next buyer would be hesitate to move on knowing there is a pending litigation. This may cause seller to negotiate with you, let's say refund some of your deposit so that he can move ahead.
0 votes Thank Flag Link Thu Feb 28, 2013
Thanks much. Your anwser is most relevant to me.
Flag Thu Feb 28, 2013
Thank you for your anwers. This is related the question by d18k20j3. I do not have a agent for the purchase. The seller is an agent herself. Yes, there was a demand of close from the seller a few days before the contract deadline. But we never signed the demand form. Right now it is 3 days after the contract cancelled. I have not signed the cancellation form. I also do not know where is the deposit.
0 votes Thank Flag Link Wed Feb 27, 2013
OUCH..... so you didn't use a realtor to represent your interests? in that case, you probably should engage an attorney to help you out of this mess
Flag Thu Feb 28, 2013
As a professional REALTOR I encourage you to contact a real estate attorney immediately as REALTORS we are not legally qualified to answer this question although I am sure you will get answers from other REALTORS who think they are helping you but the only person legally qualified to help you in this situation is a real estate attorney
0 votes Thank Flag Link Wed Feb 27, 2013
Presumably you have a realtor representing you and that you used CAR (California Association of Realtors) purchase agreement. On that agreement, look at paragraph 14-C regarding Seller right to cancel escrow. Did the seller issue a notice to buyer to perform --- usually 2 days unless noted otherwise. Was there a a demand to close escrow?

The seller can't just cancel the contract without issuing such notices to give the buyer the chance to make good on the provisions of the contract.

Further, both sides should agree in writing to the cancellation of escrow and how the escrow money is disbursed.

Finally, did the both parties agree to the liquidation clause in the contract per paragraph 25?
0 votes Thank Flag Link Wed Feb 27, 2013
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