Cupertino, CA asked in Real Estate Law for California

Q: Strange situation

We used the seller agent's relative as our agent and they were related to the seller. We made an offer on the home. But it went pending without accepting our offer. But the agent claimed that our offer was the one they are considering and that they had 4 backup offers. They forced me to take the loan through their firm as well. But they never gave me the contract. After 3 weeks they send me the contract but the date is 2 weeks behind the date I received. I did not release any of the contingencies. I did not put in the deposit as they forgot to ask and somebody else seemed to be in contract. Suddenly yesterday which is 30 days from the original signing date, they asked me to pay the deposit or they would cancel. I paid and then I was fed up with everything, I want to back out now. They are not responding at all. I did not remove any of the contingencies. Do I have a problem with getting my deposit?

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1 Lawyer Answer
Richard Samuel Price
Richard Samuel Price
Answered
  • Redlands, CA
  • Licensed in California

A: First, you have to determine whether you have a valid contract. The acceptance may have been after the offer expired.

If you do have a valid contract, there are multiple reasons why a buyer can cancel a purchase agreement and get their earnest money deposit back. You have to cancel the purchase agreement within the contingency period, and you have to give the proper notice. Who did you deposit your money with: an escrow agent, a title company, or the broker?

I suggest having an attorney reviewing your purchase agreement and facts in order to properly advise you. An attorney would probably write a letter to the agents on your behalf canceling the purchase agreement and demanding your earnest money deposit back. If that doesn't get your money back, then the CAR forms require you to go to mediation, and arbitration if you initialed that section, otherwise you can sue to get your money back.

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