Can you lose good faith deposit?

Asked by Eagan, California Tue Jun 5, 2012

Can we lose the deposit if the contingency period passed, and the sellers did not sign the addendum for extension of time to remove contingencies

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Carla Muss-J…, , Portland, OR
Sat Jun 9, 2012
And P.S. -- for all the agents who are actually ANSWERING this . . . if this person is in a CONTRACT don't you think you shouldn't . . . oh, what's the word . . .

1 vote
Carla Muss-J…, , Portland, OR
Sat Jun 9, 2012
So . . . you're in a purchase agreement, a contract to purchase -- whatever they call it down in Cali -- and you're the buyer, since you wrote "the sellers did not . . .

Don't you have a buyer's agent? Why aren't you asking them what to do? Are you in a "dual agent" situation/? Pity if that's the case. The question is so vague, we agents aren't supposed to give legal advice and you're asking us to interpret a contract we haven't read, give you an answer that you'd rely on based on contract terms we aren't privy to . . . okay then.
1 vote
Cindy Davis, Agent, San Diego, CA
Wed Jun 6, 2012
Yes, you can. These timelines are firm. Extension requests are common - particiularly because lenders are so slow...but there is no gurantee the seller will agree to an extension. What does your Realtor say? Are you trying to back out of the deal or do you want to stay in it?
1 vote
Jeff Haring, Agent, Westlake Village, CA
Sun Jun 10, 2012
Wow.. the answers so far just astound me... from offering legal advice to chastising a dual agency position (shame on you Carla Muss-Jacobs for offering such an ignorant opinion on dual agency!) Dorene is the only one who gave a reasonable answer. And I would agree with her only.

Eagan, the correct answer any agent should give you on this forum to your question is - "I don't know. I am not able to offer a legal opinion on your situation. This is something you should discuss with your own agent and/or your attorney."
0 votes
Dorene Slavi…, Agent, Torrance, CA
Sat Jun 9, 2012
Dear Eagan,
This is a question for your "buyer agent" and part of their duties to you. Since we do not have the California Purchase /Agreement contract we cannot know what the terms are that you agreed to and signed
. Please refer to your agent. If you do not have an agent.....get a lawyer now!
0 votes
Lance King, Agent, San Francisco, CA
Wed Jun 6, 2012
I would also need to review the contract before giving a definitive opinion, but based upon your rendition that the time to remove the contingency has passed but you haven't removed it, there should be no reason for you to lose your deposit.
0 votes
Shanna Rogers, Agent, Murrieta, CA
Tue Jun 5, 2012
Hi Eagan,

In CA, contingency removal is not passive. Meaning, they have to be removed in writing and the Contingency Removal (C.A.R Form CR) has to be signed by both buyer(s) and seller(s). If the sellers did not extend the contingency periods in writing and the contingencies haven't been removed in writing, the contingencies are basically still in effect. If you have not removed the contingencies, the seller can send you a Notice To Buyer To Perform (to remove the contingencies in writing) and if you don't by the deadline on the Notice To Buyer To Perform, the seller can cancel contract.

Shanna Rogers
SR Realty
0 votes
Dan Tabit, Agent, Issaquah, WA
Tue Jun 5, 2012
Without reading your contract, all I can do is tell you it means what it says. Unless both parties agree to change an aspect of the contract, the terms of the contract are in force.
If you requested extra time to resolve some issues, what did you offer the seller to want to grant you the time? If you allowed it to expire without a threat of rescission, what would cause a seller to extend?
Now, just because the time expired and your good faith deposit is at risk, you can still pursue your options of completing the sale, requesting some adjustments although you don't have any leverage apparently or walk away and possibly lose the deposit.
Your agent is the person you need to discuss this with. They are supposed to look out for your interests and keep you informed of your deadlines, options and strategies.
I hope things go well for you.
0 votes
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