Home Buying in La Mirada>Question Details

aurora09_82, Home Buyer in Fullerton, CA

Pulling out of escrow after the 17th day and after home inspection?

Asked by aurora09_82, Fullerton, CA Sun Nov 25, 2012

We are 22 days into escrow and had home inspection. We haven't had appraisal yet and gave a $5,000 deposit. We just found out that the area the house is in has had 4 shooting in the last year, which was not disclosed to us and it just clicked to us to go down to the police station. Can we still pull out of escrow and what fee or pentalies usally come with doing this? Thanks in advance!

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Answers

6
The first thing that you should do is talk with your agent. Your agent will know how to protect you. If you haven't removed your contingencies in writing, you should be ok, but I don't want to speculate because I cannot see the contract.

Good luck,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRe Lic #01456982
0 votes Thank Flag Link Sun Oct 5, 2014
Hi aurora09_82,

"We just found out that the area the house is in has had 4 shooting in the last year, which was not disclosed to us and it just clicked to us to go down to the police station."

I agree with Lance in that whether you have removed your inspection contingency is important. If not, your knowledge of the shootings is obviulsy material to you, and hence, I believe would be a valid reason to cancel the contract (which would likely be subject to the cancellation fees Skip mentions).

Now, if you have removed the inspection contingency your ability to unilaterally cancel the contact turns from an inspection contingency removal focus and on to a "non-disclosure" focus whereby you would need to assert the Seller(s) knew of the shooting and did not disclose.


"Can we still pull out of escrow and what fee or pentalies usally come with doing this?"
Discuss pulling out of escrow with your Realtor®. Call escrow to determine any cancellation fees.

Should you cancel escrow and need to research "crime" in any area I would recommend you use http://www.crimereports.com Realtors® typically do not comment on "crime & safety" due to Federal/State anti-steering law exposure. Once you enter an address go to the "Incident Layers" tab to select what type of information is important to you. Next, choose the duration of time you want to look at under "Date Range" (now limited to a 6-month view). If the area you are looking in is not covered by crimereports.com try these alternate sites:
http://tinyurl.com/a34pmyc

-Steve
0 votes Thank Flag Link Mon Nov 26, 2012
The first question is have you removed your inspection contingencies. If you have then it will be decidedly more difficult. However, it could be reasonably put forth that 4 shootings in the last year is a material piece of information that should have been disclosed, and just because you signed off on your inspections doesn't mean that new material information no longer matters.

To save money I would first talk with your agent/broker, or perhaps get the firm's broker involved to try and work it out without attorneys first as an attorney will likely eat up a lot of that $5K. If things don't get resolved that way then talk with an attorney.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Mon Nov 26, 2012
Maybe it's different in CA, but I doubt you can arbitrarily cancel a contract just because you don't like the crime stats..and that's prettty much what you have indicated.

You didn't say the home inspection discovered any structural defects, so that contingency, in and of itself, isn't an "out" unless the sellers won't address problems. You didn't state there are any problems or repairs that are needed.

In regard to the appraisal......the onus is on you to apply for the mortgage in a timely manner......at which time the appraisal will be done........now, if there is an issue with the appraisal, and the home doesn't appraise out, well, that's a potential "out" for you, but right now, that's not the case............and no one can say if you have any legitimate reasons to walk away, or what penalities you might incur.

Speak with your agent if you have one......or a RE attorney.............do not rely on advice from strangers on the internet who haven't even seen your contract, or know what steps you have already taken (or not) to act in good faith.
0 votes Thank Flag Link Sun Nov 25, 2012
Hi Debbie, the "inspection" of a property in CA is quite flexible. Obtaining knowledge of a shooting or any other "personal material fact" is enough for the Buyer to exercise the inspection contingency.
Flag Mon Nov 26, 2012
No one here can really answer your question as no one has seen your contract.

You need to ask your agent.......if you don't have one, then ask a real estate attorney for clarification and advice as to your rights. You might also read your contract to learn how the contingencies work.

In regard to crime statistics, agents aren't allowed to discuss that information - it isn't something that would or should have been "disclosed".
You had the right to investigate that on your own prior to making an offer.

Best iwshes...........
0 votes Thank Flag Link Sun Nov 25, 2012
As long as you have not removed your contingencies you should be able to cancel the contract and get your deposit back. Of course, you will be out the inspection money you spent. Depending on how much work escrow has done, they may deduct a nomial fee from your deposit. Given that it was only 22 days I would think there would be an escrow fee.
Good luck,
0 votes Thank Flag Link Sun Nov 25, 2012
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