+ Reply to Thread
Results 1 to 4 of 4
  1. #1
    talknbarb Guest

    Angry $11,000 in escrow & seller wants to back out

    What is the name of your state?What is the name of your state? CA

    I am attempting to buy a home in Los Angeles and I seem to have run into every flake in the city in my search. I had a paid for home in Indiana that I sold approximately 8 months ago, so I have a good size down payment available even though prices are so high here I could buy 4 houses anywhere else for the minimum buying price here. I found a home that I was interested in and attended an open house for the home and decided to put in a bid for it. The asking price for the home was $375,000.00 and I made an offer of $368,000.00. The real estate agent said that he didn't know if they would accept the offer and I informed him that I would not go any higher and that the offer to purchase would only be good for 48 hours as I wanted to find something to buy fairly quick since my current lease is up on Aug 1st and I wanted to close as close to that date as possible. The sellers were talking about having a second open house the following weekend since my offer to buy was the only one they received. I told them that my offer was not a standing offer and that it was only good for 48 hours. They accepted my bid, we signed the contracts, had part of the necessary inspections done and opened escrow. I had to take a check for 3% of the purchase price ($11,040.00) to the escrow agency within 2 days as well as sign the escrow documents and return them. My check has been cashed (balance of down payment of $44,000.00 to be paid at time of transfer), I have given my landlord a notice that I will be moving (30 day notice is required), my son has transferred his university credits to the school in the area where the house is located, and I have obtained a loan with a locked in rate that is lower than is currently being offered. Now over the holiday weekend the real estate agent called and said that the sellers are having second thoughts and don't want to sell the house now. This is really putting me in a bind as I have no where to move to, my son is blind so I can't just get a storage unit and get a hotel room and I am losing interest on my $11,000.00 as well as missing out on other property that I was interested in but declined to make offers on as I assumed this was a "done deal". Since they signed the purchase agreement and have no real reason for changing their minds do I have a recourse action. Can I force them to sell or reimburse me for loses concerning their change of mind? Is there a way to prevent this from happening in the future if this deal falls through?
  2. #2
    depressed1 Guest
    i am in a similar situation. try to get more info from the realtor. seller may have a better offer thank yours. if you have a contract and you really want the house sue him for it.
    i'm sueing my seller since march and it's been a very depressing and long process.
    good luck.
  3. #3
    JETX is offline Senior Member
    Join Date
    Jun 2000
    Location
    Somnambulist University
    Posts
    40,807
    Quote Originally Posted by talknbarb
    Now over the holiday weekend the real estate agent called and said that the sellers are having second thoughts and don't want to sell the house now.
    Though you don't need to have one, I have to ask... where is YOUR agent in all of this?? They should be able to advise you of the following:
    1) Tell their agent that you are NOT releasing them from their contractual obligation to sell.
    2) You should now be aware that this may not be a simple matter and you need to anticipate potential problems. You need to be prepared to document what, when and how things happen. Start now by demanding that ANY further contact must be in writing.

    This is really putting me in a bind as I have no where to move to, my son is blind so I can't just get a storage unit and get a hotel room and I am losing interest on my $11,000.00 as well as missing out on other property that I was interested in but declined to make offers on as I assumed this was a "done deal". Since they signed the purchase agreement and have no real reason for changing their minds do I have a recourse action. Can I force them to sell or reimburse me for loses concerning their change of mind?
    *** Absolutely!! You have a VERY strong position to force them to comply with their contractual obligation. Stand strong and tell them if they don't, you will file a breach of contract lawsuit against them, lock their house up in court (called a 'lis pendens') and simply win.... forcing them to sell to you, pay you compensation AND pay all your attorney fees. You are in a VERY strong position here.

    Is there a way to prevent this from happening in the future if this deal falls through?
    *** Not really. There is no way to protect yourself against someone elses unlikely decision to 'breach' their contractual obligation. Simply, make sure that you are protected (legal right, attorney fee compensation, etc.) in the event that they do.

    I have to believe that once the 'seller' realizes that you are not going to cave into their insanity, they will go ahead and sell you the property. If they don't, they have a HUGE likelihood for losing lots to you.
    (And yes, I had a case just like yours. The buyers filed for 'breach of contract' and 'specific performance' when the seller failed to show up at closing. It took some time, but the sellers eventually settled the suit by lowering the purchase price $5,000, paying $5,000 in 'damages', plus all buyers attorney fees! The house is now rental property at a consistent positive!) Hang tough... you can win this!!
  4. #4
    HomeGuru is offline Senior Member
    Join Date
    May 2000
    Location
    Catatonic State
    Posts
    81,916
    I agree with JETX and add these 2 words- specifc performance.

Similar Threads

  1. Seller cancelled the escrow
    By crs in forum Buying & Selling a Home
    Replies: 5
    Last Post: 01-02-2011, 06:17 PM
  2. title company sent escrow money back to seller?
    By ditaloca in forum Buying & Selling a Home
    Replies: 0
    Last Post: 11-04-2009, 08:58 PM
  3. Can the seller open the second escrow?
    By clytzeshi in forum Buying & Selling a Home
    Replies: 2
    Last Post: 07-19-2008, 11:09 AM
  4. Can seller cancel escrow?
    By dbrowndog in forum Buying & Selling a Home
    Replies: 4
    Last Post: 10-20-2006, 10:10 AM
  5. Seller wants to cancel "back out" of escrow
    By roseofsd in forum Buying & Selling a Home
    Replies: 3
    Last Post: 06-19-2005, 09:06 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.