Home Selling in Venice>Question Details

Angel Thomps…, Renter in Venice, CA

If escrow doesnt close does the buyer owe the seller any recompense?

Asked by Angel Thompson, Venice, CA Tue Sep 4, 2012

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6
Angel this is a very good question, without seeng the Purchase Agreements Terms it would be virtually impossible to tell. Have you removed all your investigation contingencies? What were the terms you agreed to in the original purchase agreement with counter offers will determine if the "buyer" owes anything. At the minimum I would expect the buyer to owe cancellation fees to the Escrow Company.

If you need additional help contact a real estate attorney, if you need a referral, please reach out to me directly at
Endre Barath,Jr.
Prudential California Realty
Beverly Hills,CA
homes@endrebarath.com
310.486.1002
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Tue Sep 4, 2012
If the buyer has removed all the contingencies and it is after day 17 of the transaction, the buyer probably does owe the seller the earnest money deposit. But again, like others have said, it depends upon the way the contract was written.
0 votes Thank Flag Link Tue Sep 4, 2012
No way of knowing without more information.
0 votes Thank Flag Link Tue Sep 4, 2012
Angel:

This really depends at what point the transaction presumably fell apart in the contract timeline, what contingencies the Buyer removed and whether Buyer or Seller was the primary cause and whether the other party agrees to cancel.

Please post more details if you would like additional opinions.

-Steve
0 votes Thank Flag Link Tue Sep 4, 2012
Angel it depends what the purchase agreement states and why it did not close if the buyer had a contingincy for mortgage or inspections and they got denied or inspections failed than it is usually a clean release. If the buyer changes their mind, there may be recourse. Best bet is to ask your agent or a lawyer to review tyour agreement.
0 votes Thank Flag Link Tue Sep 4, 2012
I guess it depends on why it didn't close, what the contract says about what happens if it doesn't and why. Normally the earnest money is the only thing available to the seller if the buyer defaults. If the loan was denied and that is a contingency in the contract it might not be considered a default. You need a legal answer and we can't give those to you.
0 votes Thank Flag Link Tue Sep 4, 2012
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