Home Buying in Baldwin Park>Question Details

Melinda, Home Buyer in Baldwin Park, CA

if closing date has passed on escrow, can the buyer ask for the deposit back?

Asked by Melinda, Baldwin Park, CA Wed Jun 17, 2009

I'm buying a house straight from the homebuilder. We opened escrow a while ago, but the close date has passed. Now the homebuilder has issued a Notice To Perform & a Demand To Close Escrow.
We really want to buy this house, but the homebuilder refuses to install a gas meter on the home. How can Occupancy be issued without the gas meter? So, if we decide to not close, can we get our deposit back?

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Answers

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If you are issured a notice to perform, and you do not perform, the builder can cancel. If the escrow has a closing date and the date has passed you can cancel the escrow with a letter to escrow. When you write your letter to escrow to cancel, ask that your deposit be returned to you.

You will not receive your money back automatically, both the buyer and seller have to sign cancelation to return your deposit.

Noone can make you buy. My contracts has a liquidated damages clause initialed by both parties. The amount of the damages is equal to the amout of the deposit. The worse is you lose your deposit. You may have to take the builder to small claims to get that.

Read your contract, call the escrow officer, shout out a question on Trulia. You are doing the right thing by asking lots of questions.

sindyverdugo@remax.net
562 433 3777
0 votes Thank Flag Link Fri Nov 19, 2010
Prior to making your offer on that home did this homebuilder show you any "model" homes that had "gas meters". If so, then it was your intentions to buy a home with a "gas meter". If not, then you may find yourselves dealing with some construction issues (I.e. issues on whom is to pay for said "gas meter" and at what amount), keep in mind some homes built in remote areas don't have a typical gas meter that is a meter connected to a "city gas" line. As some home can have "propane gas" tanks to operate the gas appliances. If you previewed a "model home" of which you firmly believed had a "gas meter' connected directly to a public gas (City line) prior to making you offer then yes the homebuilder needs to install same or is in "breach of contract" for those facts and the fact that the escrow date has passed". Both of which you should be able to get your good faith deposit check back. If you really want the property it may be best to talk to a lawyer; it may cost you some money to have an attorney draft up a letter to resolve same but it may be in all parties best interest (prior to finding yourselves in a bigger lawsuit). If the homebuilder agrees to your lawyers requests try to get the homebuilder too to give you credits for said legal costs (have too your attorney work this out). If the home was built in a remote area you can check to see what it would cost to have same built or added on, then try to renegoitiate with the homebuilder or again if in a remote location look into "propane tanks". However if all the other homes that homebuilder has built in that same area has "gas meters connected to a city gas line then of course yours too should. You too may want to check with the city that you are having the home built in as it may be a cost of which only a city employee can install said "gas meter". I would check with the city first again as it may be only city employees can "tap" into city gas lines. if you find out different then you can always mentioned to the homebuilder that you are going to file a complaint with the local department of Consumer Affairs and or California Contractor Department however do keep in mind you must of first been told a "gas meter" would of been installed or seen one on a "model" home leading you to believe same would too be included on the home you were having built. Another avenue is to too mention you are going to talk to the local news media/news paper...builders hate negative press. Best of Luck. But first check with the local city as they may have to install same. Andre E. Martinez - Realtor (562) 688-8887.
0 votes Thank Flag Link Tue Mar 30, 2010
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