Home Buying in 80234>Question Details

vivien tchen, Home Buyer in Walnut, CA

The buyer canceled the escrow two days before the closing date without decline letter from the lender. They want the deposit back. Do we have the?

Asked by vivien tchen, Walnut, CA Sun Aug 4, 2013

right to keep the deposit? Our contract with the current listing agent expire on Aug.4. Can we put the property back on market with a new listing agent on Aug.5 before we solve the deposit issue with the current buyer?

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Answers

10
We don’t know what your contact says so any advice from on-line will be suspect. We have no idea why the buyers cancelled although you imply that it is a loan problem.

You should seek the advice of your agent...Oh!...Wait!...you want to change agents. Kind of awkward, huh? You are seeking help from the internet instead of the advice of the person who was your trusted advisor.

Maybe you can seek the advice of your spurned agent’s broker.
1 vote Thank Flag Link Sun Aug 4, 2013
I like your answer. It seems to speak to the only issue Realtors online can address: the deal fell and this seller is punishing the Realtor who sold the house in the first place. And by doing so, is compounding issues regarding earnest money and trust.
Flag Wed Aug 7, 2013
Sally from Boulder is 100% correct ... what does your contract say? and I'll add, who and where is your agent? This could become a very serious legal issue for both parties, and asking for advice from realtors on line who know nothing about the situation is dangerous for all parties involved, especially you.

I would seek legal advice immediately.

Julie Montgomery, RE/MAX, Greenwood Village, CO
Web Reference: http://www.jmontgomery.com
1 vote Thank Flag Link Sun Aug 4, 2013
As there's a contract this becomes a legal question. Your listing agent should be the one you're speaking with, but obviously you're not satisfied with them and are moving on. You should speak to an attorney and you may also want to contact the Broker in Charge where the first listing agent worked and speak with them. Unless the buyers terminated for a reason permitted under the contract you had both signed, then no you do not have to return the deposit to them. If they claim they could not get a mortgage, then it was their obligation to send you written evidence from their lender that their loan was rejected and you needed to have received this in a timely manner as stipulated in the sales contract that was signed.
0 votes Thank Flag Link Mon Jul 28, 2014
The expiration of your listing agreement has absolutely nothing to do with your contract with the buyer.
0 votes Thank Flag Link Mon Jul 28, 2014
Your listing agent let the buyer paint your property? Before possession?
You'd better hope you never gave him/her permission to do that.
Something doesn't smell right here.
0 votes Thank Flag Link Mon Jul 28, 2014
Very interesting questions, and they depend on what is in your listing contract and purchase agreement. Best of luck to you.
0 votes Thank Flag Link Sat Aug 10, 2013
Vivian,

There are too many unanswered questions here for us to give you a definitive answer. It will of course depend on how your contract reads and what the deadlines are in the contract for the financing contingency to be removed. We are also wondering why you are changing listing brokers? You don't express that he has done anything wrong in this process. Talk through your issues with him and let him help you through this process. Where is your home; in Colorado or California?

Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Sun Aug 4, 2013
My house in California. My listing agent let the buyer paint my house before closing escrow without our permission. Now the buyer back out. That's the reason we get upset and change the broker.
Flag Thu Jul 3, 2014
My house in CA. My question is : Can we relist the house in market before we solve the deposit issue?
Flag Mon Aug 5, 2013
You posted in the Denver forum, but you said "escrow" and your location is listed in CA.

If this is property is in Colorado, you most certainly can contract with a new broker and have the property re-listed in MLS tomorrow.

The loan Conditions deadline is important for you to research.

It also might be easier to give them the earnest money and your best wishes to resolve whatever issues they had that prevented them from taking the final step. Good Karma is more important than you think.
0 votes Thank Flag Link Sun Aug 4, 2013
The issue with the EM should be clearly spelled out in the purchase contract. If they're still within the financing or loan contingency deadline they should have the right to cancel. The standard contract in CO doesn't require the buyer produce any proof that they were unable to obtain financing; indeed they can walk away if they're simply not happy with the terms of financing they were able to secure.

Even though it sounds like there's another whole issue between you and your agent, that's who you should be asking.
0 votes Thank Flag Link Sun Aug 4, 2013
What does your CONTRACT say?? It should be pretty clear as to what happens if the buyer doesn't obtain financing. I'm thinking they would get the earnest money back. Most contracts are written to protect the buyer and financing is the last big "hurdle" and if that doesn't happen, they can usually get out and get money back. If they just got cold feet, (and don't have any documentation from the lender saying financing was denied), then you MIGHT have a case to get the EM back. Either way, you need to talk to your Realtor. Sounds like today is the last day of your listing period with him/her.
0 votes Thank Flag Link Sun Aug 4, 2013
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