to all the realtors

[ram_greygti]

hi guys,
this is to all the realtors,

well, i have been trying to sell my condo for about six months and last month i had a buyer, bad thing was that he backed out two days before closing, escrow closing was tomorrow, now if he put money down, who keeps it the realestate company or....??
don't know the rule here in cali, but just wondering, i was so happy it was going to sell, but nope they said that a dog was barking too much!?:confused: :( :( :mad:

[mitssn]

I asked a reputable realtor friend of mine. This is what he said...

The best answer I can give is it all depends on the contract. Most times the contract only allows for a 17 day period in which if the buyer defaults the seller gets the money. The contract actually reads that the seller and the sellers agent gets the money 50/50. In some instances the contract is not enforceable until the day of the close of escrow. So have your friend call me and I will go over the contract if they choose.

Hope it helps!

-Steve

[mike]

usually if the buyer backs out, he loses his good faith deposit, which you should be yours to keep, but as mentioned above, depends on the contract..........

[ram_greygti]

thanks, this way i kinda know whats going on, sucks trying to do all the paperwork and i am in texas and the house in san diego. well guys thanks for the answer and wish me luck to sell that condo. i mean i have lowered the price enought to sell but i guess the market is just bad in san diego at the moment.

[GTIcrazy]

What they said.

My $0.02, but don't rely on what I am detailing, talk to your real estate agent. It is their fiduciary duty to guide you through this process.

If the contingencies were waived by the buyer (you would have the form with their signature(s)) you are entitled to the escrow deposit. You will not, however, just receive it.

If the buyer wants the money back, they have to take you to small claims court or the like and sue you. The judge will make the determination. You would just need to show the executed purchase contract and the form that shows that they waived contingencies. The point being that they waived contingencies and did not perform by the agreed upon date. Make sure that your real estate agent goes with you and meet with them to discuss a course of action.

If the judge rules that the money is yours, you then have to sue to get it. Escrow companies are wary of just releasing the money to you, even with a judgment in your favor in the buyer's suit. You would likely have to sue for the money, even if there was no award from a suit by the buyer.

I have seen real estate agents press the issue with the buyer's agent and have them sign a form to release the money in escrow to you. It usually goes along the lines, "My client is entitled to the escrow deposit as per your waiving all contingencies for the purchase on xx/xx/xxxx. If we have to go to court, we have the proper paperwork to show that we are entitled to the money. My client will also add monies that they expended in detrimental reliance on your waiver of contingencies, such as rental fees for a storage unit, deposits for the rental of a place to live, etc." If the buyer signs the release of funds, escrow will give you the money.

Best of luck. It's a hassle, but you may be in a pickle now because of their actions.

[ram_greygti]

thanks

[ram_greygti]

ill see what my realtor says