bsrlrj, Home Buyer in Walnut Creek, CA

Seller won't give back our deposit after expiration of contract. We waive contingencies as advised by our agent because we are 1st time home

Asked by bsrlrj, Walnut Creek, CA Tue Jun 12, 2012

buyers. Appraisal came back $82,000 less than contract price. We do not have the extra $82,000 to gill in the gap. the bank will only let you borrow what home is appraised at. Our earnest money is $7,500 and they will not release our money. What recourse do we have?

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Answers

7
Contractraully no recourse. You need to get the broker of your agent involved and possibly an attorney if they did not explain the purpose of contigencies
0 votes Thank Flag Link Tue Jun 12, 2012
You absolutely need to talk to your agent about this and you MUST get his broker involved. If your agent advised you to remove loan and appraisal contingencies before you had seen the results of the appraisal, this could be considered a breach of his fiduciary duty. Don't delay this. Do it NOW!

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - bernard@bernardgibbons.com

http://www.BernardGibbons.com
0 votes Thank Flag Link Tue Jun 12, 2012
Per the purchase contract, there is an appraisal contingency and a loan contingency. Did you waive both of these???

Generally speaking, when a property appraises too low, both sides go back to the table and try to negotiate a deal that will appraise. If the sellers are unwilling to do that and they woin't give back your depots, you might need to go to mediation. Your agent should be able to set that up, or you go to your local realtor association for referrals to mediators.

Without seeing the contracct, it's hard to know exactly what you are dealing with...if it's after your 17 day inpsection period and you did remove all the contingenices, the sellers may have a claim to some portion of the deposit.

Take a good look at your contract and what it says...this might help you figure out what steps are most appropriate now...you might even have an attorney look at it.

Good luck.
0 votes Thank Flag Link Tue Jun 12, 2012
Yes, we did waive both as advised by our agent. We are 1st time home buyers and not familiar with the process and what this meant. We are at an impasse right now with the seller's as the contract expired 5/21/12.
Flag Tue Jun 12, 2012
This doesn't make any sense. Your agent advised you to remove an appraisal contingency even though it came in $82K low?
0 votes Thank Flag Link Tue Jun 12, 2012
Making sure i read this right: you removed ALL your contingencies, including appraisal and loan contingencies?

And when the appraisal came in lower than your offer, did you and your agent submit a request to reduce the price accordingly?

Did the seller issue a notice to perform? Did seller issue cancellation with instructions on how to release the deposit. WHAT did you receive and/or sign?

Better get your agent's broker involved pronto, and ask to speak to a real estate attorney representing their agency first before you hire your own.

Look closely in the terms of your contract, particularly the mediation/arbitration, right of seller/buyer to cancel. Make sure you have all your paperwork handy.

As a consolation to you: seller can't get his hands on that deposit until you sign cancellation and release of deposit paperwork.
0 votes Thank Flag Link Tue Jun 12, 2012
You didn't have any contingencies? WOW. I doubt there is anything you can do. Speak to an attorney.
0 votes Thank Flag Link Tue Jun 12, 2012
You need to see legal council immediately.
0 votes Thank Flag Link Tue Jun 12, 2012
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