Legal Question in Real Estate Law in California

Re: 10 month escrow (June '06) - Trying to cancel Contract with Buyer

Depends on whether or not you have made time of the essence. If you have not, a court can infer that his time delays are reasonable and that you are unreasonable, and therefore in breach.

If time is of the essence, and you have engaged in conduct that indicates that time is not really of the essence, then you may have waived the provisions of this clause.

I don't have your contract, or escrow instructions in front of me, so I can't make any decisions about what you or your escrow company is supposed to do. I do agree with some of the points raised by Mr. Whipple, but I think you should talk to an attorney, if at least for a consultation, and that you do so with all of the relevant documents in hand.

Very truly yours,

Re: 10 month escrow (June '06) - Trying to cancel Contract with Buyer

(1) Your right to cancel will depend on the language in the contract documents. (2) Escrow will do anything the parties instruct.

You should have a lawyer review your documents ASAP.

We practice real estate law out of Newport Beach. Let us know if you would like help.

Re: 10 month escrow (June '06) - Trying to cancel Contract with Buyer

Does the broker work for you? Dual representation? In either case, that is the person you should be asking.

If your contract of sale is contingent upon the buyer obtaining condominium conversion approvals, I can understand why it's taking so long, and unless there is some other time limit in your favor, and there ought to be, you may be stuck. Long escrows are not rare. I have one client whose vacant property has been in escrow for 15 months pending government approvals of an endangered species mitigation-banking feature. Another deal was in escrow for just over a year while use permits were being obtained.

The buyer's financing is likely dependsnt upon his lender seeing approved condo conversion permits, either as an express condition or as a major factor in making the loan look attractive to a prospective lender.

Escrow companies follow instructions given to them before escrow opens. They aren't judges. They will generally refrain from making any decision on terminating escrow or releasing/refunding any money until it is crystal clear that all parties agree, or it's in the written instructions.

I'd suggest you re-read the contract including all addenda, focusing on the time lines, escrow instructions and the contingencies. Then, with a fresh view of the contract provisions, discuss your concerns first with the broker representing you, then with the escrow officer assigned to your escrow.

If that doesn't clear matters up, I think it's time for you to see a lawyer.