Legal Question in Real Estate Law in California

Re: Cancellation of Contract, Release of Deposit

It should be returned immediately. Who has the money, someone's broker or an escrow company? I'd ask a lot of question by phone of everyone involved as soon as possible. A lot of real estate brokers, agents and firms are in rough financial shape these days, and they may be holding and using client money that was supposed to be in their trust account or in an escrow!

Re: Cancellation of Contract, Release of Deposit

First you need to look at the cancellation form to see if there is a timeframe for return contained on the face of it. If there is, then everyone involved must comply with that timeline. If there is no timeline, then the assumption is that it must be returned immediately. Who was the check made out to - escrow, or the listing agent's broker? If its escrow, call them and make sure they received the instruction and if they did, tell them you will be down at their office today to pick up your check. If it was made out the the listing agent's broker, same deal - tell him you will be down today for a check, and if its not ready, your next stop will be a call to the DRE to file a complaint. Mr. Whipple is correct - there are some unscrupulous people doing bad things, and it may be that the money was not placed in trust as the law requires, but has been "utilized" by the broker for other purposes. If that's the case, call the Department of Real Estate today and complain - there is a victim's fund you can apply to be paid out of, but that too take some time. Good luck.

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