+ Reply to Thread
Results 1 to 6 of 6
  1. #1
    stuckinla is offline Junior Member
    Join Date
    Aug 2005
    Posts
    3

    Return of Good Faith Deposit

    What is the name of your state? CA

    I put an offer on a house and supplied a large amount of earnest money to escrow. Due to Job changes and uncertainty and items found during the inspection and our due diligence review of the property, we decided to cancel escrow. We did this within 17 days of the offer per the terms of the "out clause" in the standard california real estate contract.

    Problem...it's been over 30 days and the seller refuses to sign the escrow instructions for the return of the deposit....sour grapes I guess since they thought we were not serious "good faith" about the house (no, in 15 days we only listed and sold our house, hired and paid for an inspector, appraisal and all sorts of other work to acquire the house and sell our current house...right).....not serious...sure.....

    So what's the next step?

    Send a demand letter for release of funds, mediation, contact an attorney?

    I'm thinking "Mr. nice guy " time is over and it's time to send a message.

    Any advice is appreciated.
  2. #2
    HomeGuru is offline Senior Member
    Join Date
    May 2000
    Location
    Catatonic State
    Posts
    81,916
    Quote Originally Posted by stuckinla
    What is the name of your state? CA

    I put an offer on a house and supplied a large amount of earnest money to escrow. Due to Job changes and uncertainty and items found during the inspection and our due diligence review of the property, we decided to cancel escrow. We did this within 17 days of the offer per the terms of the "out clause" in the standard california real estate contract.

    Problem...it's been over 30 days and the seller refuses to sign the escrow instructions for the return of the deposit....sour grapes I guess since they thought we were not serious "good faith" about the house (no, in 15 days we only listed and sold our house, hired and paid for an inspector, appraisal and all sorts of other work to acquire the house and sell our current house...right).....not serious...sure.....

    So what's the next step?

    Send a demand letter for release of funds, mediation, contact an attorney?

    I'm thinking "Mr. nice guy " time is over and it's time to send a message.

    Any advice is appreciated.

    **A: time for an attorney. If that demand letter does not then ADR and court interpleader.
  3. #3
    stuckinla is offline Junior Member
    Join Date
    Aug 2005
    Posts
    3
    Quote Originally Posted by HomeGuru
    **A: time for an attorney. If that demand letter does not then ADR and court interpleader.

    Thanks...So I take it an Attorney would draft the demand letter (vs the agent). I assume I need to get him/her a copy of the final agreed upon sales contract with dates and the date of written notice to cancel the contract as well as the notice from escrow to sign the escrow instructions to return the deposit. Is that all they need to start this action?

    What is ADR?
  4. #4
    HomeGuru is offline Senior Member
    Join Date
    May 2000
    Location
    Catatonic State
    Posts
    81,916
    Quote Originally Posted by stuckinla
    Thanks...So I take it an Attorney would draft the demand letter (vs the agent). I assume I need to get him/her a copy of the final agreed upon sales contract with dates and the date of written notice to cancel the contract as well as the notice from escrow to sign the escrow instructions to return the deposit. Is that all they need to start this action?

    **A: yes, all written contracts and docs and an interview with you.
    *********

    What is ADR?

    **A: by virtue of the terms and conditions in your contract, you may have agreed to mediation and arbitration, rather than litigation, as a form of Alternative Dispute Resolution.
  5. #5
    stuckinla is offline Junior Member
    Join Date
    Aug 2005
    Posts
    3
    Quote Originally Posted by HomeGuru
    **A: by virtue of the terms and conditions in your contract, you may have agreed to mediation and arbitration, rather than litigation, as a form of Alternative Dispute Resolution.
    ADR is in the contract, correct.

    Appreciate the advice and will keep this forum posted on progress.
  6. #6
    HomeGuru is offline Senior Member
    Join Date
    May 2000
    Location
    Catatonic State
    Posts
    81,916
    ok, good luck to you.

Similar Threads

  1. Good Faith Deposit
    By shasha01 in forum Buying & Selling a Home
    Replies: 9
    Last Post: 12-09-2009, 05:43 PM
  2. Return of Good Faith money
    By foxpascal in forum Buying & Selling a Home
    Replies: 1
    Last Post: 11-03-2009, 02:42 PM
  3. Return of Good Faith Deposit
    By kmbr48@msn.com in forum Other Real Estate Law Questions
    Replies: 0
    Last Post: 11-29-2006, 11:22 AM
  4. good faith deposit
    By jtanner in forum Buying & Selling a Home
    Replies: 1
    Last Post: 06-10-2005, 08:12 AM
  5. Return of "Good Faith Deposit"
    By Evan123 in forum Buying & Selling a Home
    Replies: 8
    Last Post: 08-27-2001, 06:01 PM

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.