Dwtay, Home Seller in Riverside County, CA

IS THE SELLER ENTITLED TO THE DEPOSIT MONET IF BUYER CANCELS 1 WEEK TILL CLOSE OF ESCROW?

Asked by Dwtay, Riverside County, CA Wed Jun 17, 2009

THE BUYER OF MY HOME CANCELED 1 WEEK TILL THE CLOSE OF ESCROW,CLAIMING HE LOST HIS JOB. CAN I THE SELLER GET THE DEPOSIT MONEY FOR TAKING THE HOUSE OFF THE MARKET, AND EXPENES FROM THE CANCELATION?

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Answers

13
Dwtay, if you're still out there, since you asked this question over a year ago - what finally happened?
0 votes Thank Flag Link Fri Jun 18, 2010
Escrow Disputes are genetrally outlined in the Purchase Agreement. Yu must read the document to determine how the dispute will be handled. In Florida for instance, a dispute must be filed by the Broker within 15 days. They are Mediate, Arbitrate, Litigate or request Dispursement Order from the court.
Have the Listing Office Broker explain to you what your particular options are in California and then follow the protocol.

The loss of the buyer job, will prohbit his loan from being approved which means the house will not go to closing. The Purchase Agreement should contain information as to how this will be handled regarding the return or division of the Escrow Deposit.
0 votes Thank Flag Link Fri Jun 18, 2010
Are the proper forms signed such as contigency removal? If yes, then perhaps the seller/buyer can negotiate. Loosing one's job is not simply changing one's mind.
0 votes Thank Flag Link Thu Nov 5, 2009
Dwtay

In reference to "Liquidated damages" ....this means that the amount of the earnest or deposit money would be handed over to the seller, to cover losses, in the event the buyer is in BREACH of the contract. The key word here is Breach.................under these circumstances, losing one's job, and not being able to complete the purchase may not defined as a breach .

Call an attorney............let him or her advise you.
I am sorry this has happened to you.................I know how upsetting it must be.
Good luck
Debbie Rose
0 votes Thank Flag Link Sun Oct 11, 2009
Dwtay...you really need to speak to an attorney.

I had a similar situation. My buyer lost his job 2 weeks before the scheduled closing date....he and his wife were heartbroken.......so was the seller.
The buyer had a mortgage contingency in the contract, but although it had been satisfied when he received his commitment, he could not complete the purchase as the mortgage company would no longer give him the loan.(they check enployment prior to the closing)

In this case, it was decided that the buyer was entitled to have his depost money returned, as he acted in good faith, and the loss of his job was out of his control. In a way, his mortgage contingency protected him from losing his deposit money. If he couldn't get a mortgage, he couldn't buy the home, even though the commitment was in place.

Now............this is what occurred in my situation.......it may work out differently for you.

Call an attorney ASAP, and see where you stand. No realtor should or can give you legal advice.

Best wishes...
Debbie Rose
Prudential NJ Properties
0 votes Thank Flag Link Sun Oct 11, 2009
You, the seller are entitled to the deposit unless the contract says otherwise. Incidentally, did your agent put the property on Pending or Backup Offers? If she put it on Backup Offers, then you continued to get action on your listing, thus it was not completely "Off the Market"
0 votes Thank Flag Link Sun Oct 11, 2009
THERE WAS STILL a LOAN contingency. But my Realtor acts like that is normal to stay on till the end, was she suppose to take it off?
0 votes Thank Flag Link Thu Jun 18, 2009
MY REALTOR SAYS IT'S BETWEEN ME & THE bUYER. sHE UNDERSTANDS THAT THE hOUSE HAS BEEN OFF THE mARKET FOR OVER 2 MONTHS AND I HAVE LOST POTENTIAL OFFERS, AND I HAVE PUT MONEY DOWN ON A NEW TOWN HOME FIRST & LAST SECUITY DEPOSIT, ALSO PAID UP FRONT HOA PACKAGE OF $440.00,. I THINK THAT IS WHAT EARNEST MONEY IS FOR ISN'T IT? YOU TAKE YOUR HOUSE OFF THE MARKET SO THE BUYER COMES THROUGH ON BUYING IT!
0 votes Thank Flag Link Thu Jun 18, 2009
DW
What does your Realtor say?
One question is this:
Although you may be legally entitled to keep their deposit, is that they fair thing to do if the buyer really lost his job?
Review the paperwork with your attorney and Realtor, then you make the call.
0 votes Thank Flag Link Thu Jun 18, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Dwtay:

Were all the contingencies removed in writing? And what is YOUR broker saying about this?
Web Reference: http://www.carlmedford.com
0 votes Thank Flag Link Thu Jun 18, 2009
I READ OVER THE CONTRACT, AND THERE IS A SIGNED LIQUIDATION CLAUSE BY BOTH PARTIES. NOW WOULD THIS GIVE ME THE RIGHT TO COLLECT THE "EARNEST MONEY?"
0 votes Thank Flag Link Wed Jun 17, 2009
Hi Dwtay,

If the buyer removed the contingencies you may be able to keep the deposit. But if he does not release the deposit from the escrow and you donot sign the cancellation of the escrow than you will probably enter a long dispute and may end up in arbitration. If he truly lost his job and can prove it you may not win. But if the the deposit is signifcant you should talk to an attorney so you can handle wisely.
0 votes Thank Flag Link Wed Jun 17, 2009
Dwtay:

Maybe. It depends on the way the contract was written and whether or not contingencies were actually removed. There is no automatic guarantee that you get the deposit.

Without knowing more details or seeing the contract, it is very hard to know.
Web Reference: http://www.carlmedford.com
0 votes Thank Flag Link Wed Jun 17, 2009
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