Legal Question in Real Estate Law in California
Backing out - Buying a House already In Escrow
Found a Townhouse, wife (owner), show us the place, is very clean, house will be painted/clean; appliances will stay (verbally). Made 1st/2nd offer, both seller/buyer agreed. Appraisal is lower than the selling price. I back out seller/agent offer to go with the appraise value plus 3% toward closing cost. Accepted the offer. . Open escrow for 30 days with a disclosure of perdiem charge if not close by mention date or cancel perdiem will be deducted from deposit. Appraisal date is past 30 days, perdiem started to kick in. Things went wrong. Couples (Seller) marriage problem. My credit score went down. While working on my loan, Couples got in to a fight, place is not clean, stove is missing, house not painted, overall the house is damage. Got my loan finance 95%. Have to come up 5% and got it. More than days past still not close. Husband refusing to paint, not to furnish (stove), but he will fix the dent, broken windows and clean the place. Getting ready to close, called broker ask how much money to bring in, $6100, broken window not fix. Seller offer $1000 credit, will fix windows. Closing cost too high, can�t afford, back out the deal.
Will I get all or portion of $2000 deposit? Am I liable to any damages?
2 Answers from Attorneys
Re: Backing out - Buying a House already In Escrow
It depends on what your contract says. There are also 2 sides to every story, so I would want to get the other sides version, too,
Re: Backing out - Buying a House already In Escrow
This kind of problem is almost impossible to diagnose without going over all the facts and all the documentation with a fine-tooth comb. My guess is that in court you'd forfeit your deposit if you fail to close, but the condition of the house could be a defense.
If you are still interested in buying and the sellers still want to sell to you, perhaps they would carry (lend back to you) the additional few thousand dollars necessary to close, maybe on a two-year second deed of trust.
I'd certainly recommend negotiating or mediation as an alternative to a messy suit over not-very-much money.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
