Legal Question in Real Estate Law in Arizona
house sell gone wrong
I was selling my home, which I was renting at the time. Found a buyer that was interested a counter offer was signed on 1/20/07 but he wanted to move into the house no later than 1/31/07. Once moved in he would pay a per diem rent amount until escrow closed. We had to pay our current tenant 2k for him to move out. The buyer was supposed to pay $3500.00 in earnest money to the escrow co. The only amount paid to the escrow co was 1k. The buyer decided to move out and back out of the deal. The escrow co never received the $2500.00 or any rent monies from the buyer but they didn't tell us that the rent or earnest money balance was not received. We were stuck paying 2 months of mortgage pymnts. Didn't get any rent or the $2500.00 balance from the earnest money from the buyer. We are out approx. $5000.00. I think the escrow co. is also at fault for not notifying us that the buyer didn't pay the money. If the complete earnest money and rent were paid we would have been ok, even if he decided not to buy the house. Does this sound like a case for a lawyer or small claims court?
3 Answers from Attorneys
Re: house sell gone wrong
Small claims if in California. They breached the agreement to post the appropriate earnest money (which would have been your liquidated damages) for this kind of situation.
Re: house sell gone wrong
You should have a lawyer review the documents and determine what (if any) your damages may be. Small claims court cases are limited to matters not exceeding $2500 in Arizona (Maricopa County).
Re: house sell gone wrong
Lawyer.
You were over your head in representing yourselves in the house deal, so I doubt you would be able to carry off a lawsuit and trial. It will be more involved than you probably think.
You were given information in another response which might be misleading. The Small Claims division of the Justice Court, where parties represent themselves only, (think of Judge Judy court) is only one division. Justice Court has jurisdiction up to $10,000. Superior Court has jurisdiction over $5000.
See www.superiorcourt.maricopa.gov/justiceCourts/Info/civilsuits.asp#a
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