What happens when escrow doesnt close?

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

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Endre Barath’s answer
Endre Barath, Agent, Beverly Hills, CA
Fri Sep 7, 2012
Angel, a great deal depends on what the reason is? Is the buyer, the seller at fault or is there some other reason why escrow does not close? There are a multitude of reasons that could be. To give you a better answer we need more information. I represent buyers and sellers in the Venice area and am familiar with the Purchase Agreement. Feel free to reach out directly if you have additional questions.

Endre Barath,Jr
Prudential California Realty
Beverly Hills,CA
Web Reference:  http://www.endrebarath.com
0 votes
Steven Ornel…, Agent, Fremont, CA
Tue Sep 4, 2012

As Lance and Scott have already noted, this really depends at what point the transaction presumably fell apart in the contract timeline, what contingencies were 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.

0 votes
Lance King, Agent, San Francisco, CA
Tue Sep 4, 2012
Presumably you are asking what happens to the earnest money deposit. It depends on the particulars of the transaction. If you want to post more details I'm happy to respond, but your contract should cover it and your agent should be able to tell you
0 votes
Scott Godzyk, Agent, Manchester, NH
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.
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