Return of earnest money deposit california
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Let us know when your receive great advice so we can thank our lawyers and point others with similar questions in the right direction. This is a question regarding the rights of the parties in a real estate sale of a single family home located in Cupertino, California. In this case the parties signed a binding purchase contract CAR on a Friday, October 3, The contract allowed 10 days for removal of inspections contingencies, and 21 days for all loan contingencies.
The buyer notified the seller on Sunday, October 5, that they were cancelling he contract. Is the seller entitled to keep any portion of the earnest money deposit?
When is a seller entitled to keep the earnest m - Q&A - Avvo
Practically speaking, if the seller hasn't deposited money into escrow already, you may have difficulty collecting and enforcing this agreement, and it may end up being more trouble than it is worth. You should consult with an attorney who can look at the signed contract and get some additional information in order to receive more comprehensive answer.
See paragraph 14 of the contract which provides for the continuation of the buyer's contingencies, even after the stated time limits, and requires the seller to give the buyer a 24 hour "Notice to Buyer to Perform" as a precondition of cancelling the escrow. If the buyer doesn't timely remove the contingencies after receipt of the notice, then the seller may "cancel this Agreement in writing and authorize return of Buyer's deposit The reason for the qualified "probably not" is two fold.
First, an answer must always be qualified where limited background facts are known. Here, it is not clear who is holding the deposit, whether the liquidated damages clause was initialed, and whether the seller had any actual damages as a result of the cancellation. Second, if the buyer's reasons for cancelation have nothing to do with any of the contingencies, the seller may claim that the buyer has breached the implied covenant of good faith and fair dealing and assert entitlement to the deposit for that breach.
As a practical matter, it is very difficult for a seller to prove that the buyer cancelled in bad faith and not for some legitimate reason. Buyer's rights in property sales Escrow in real estate Earnest money deposit Real estate Family law.
What are the laws in California regarding the earnest money
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Earnest Money Attorney in Los Angeles | California Purchase Agreement Enforcement Lawyer | Escrow Deposit Disputes
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When is a seller entitled to keep the earnest money deposit if buyer backs out of the deal. Cupertino, CA October 9, Litigation Lawyer San Mateo, CA.
Posted October 10, 6: Ask a similar question. Mark as helpful Helpful 0 comments. See more Real Estate lawyers. Douglas Stuart Draper Jr. Real Estate Attorney Woodland Hills, CA. Posted March 11, 6: Dispute of buyer cancellation after final walk through, we are the buyers.
Home Buying: What is the earnest money deposit? - Trulia Voices
Seller breached contract period. They won't give full refund of the earnest deposit. What are my options?
How do I get earnest money back for home purchase if seller is refusing to give it to me? Real estate purchase and sale under CA state law, dispute with seller regarding escrow funds. See all advice on Real estate. Have your own question? Real estate topics Real estate Property Land use laws Neighbor law Real estate documents Real estate finances Family law Buyer's rights in property sales Earnest money deposit Escrow in real estate.
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