I was told small claim court does not deal with real estate issue, is that true

Asked by Stellar, Los Angeles, CA Tue Jan 25, 2011

Sale had to be canceled since the buyer can't get the loan, and the seller does not release the deposit to the buyer. I asked here and spoke to a couple of RE attorney. Many people suggested me to file small claim since it's a small amount. However, the seller's agent told me small claim court does not deal with real estate issues. The only option is go to arbitrition. Is it true?

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James Gordon…, Agent, Hamilton, OH
Wed Jan 26, 2011
Stellar first off I am not an attorney and do not live in California. In my opinion ernest money is not real estate but a contract issue. Your purchase agreement may have said that you need to use arbitration. In my area if the parties can not agree to the ernest money distribution a party to the contract may file a suit in small claims courts depending on the amount of ernest money to get a court judgement on distribution.
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