Legal Question in Real Estate Law in California

Cancellation of escrow (seller)

We accepted an offer to purchase our home in September 2008. This was to be a 30 day escrow, contingent upon financing approval. After 2 failed attempts to secure financing, we sent our buyer a Notice to Perform and a Demand to Close Escrow by a specific date which is coming up soon. The buyers are currently working with mortgage broker #3 to secure financing, but it doesn't look like they will succeed before the given date to perform. Meanwhile, another interested party has come forward. What steps do we need to take to cancel escrow with the original buyers, and do they need to sign a cancellation contract in order for the agreement to be cancelled??


Asked on 11/29/08, 12:37 am

2 Answers from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Cancellation of escrow (seller)

You do not indicate whether the new offer is at the same price or better. If you are willing to waive any damages against the first buyer, contact them and tell them if they agree to withdraw immediately you will drop any claim for damages against them. If that does not work and you are not willing to wait the additional time, tell them that it is clear they will not be able to perform,,they are already in breach of the agreement, and to mitigate your damage claim against them you must deal with the new potential buyer so you must conclude they have breached the agreement and will not be able to fulfill it .

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Answered on 11/30/08, 2:14 am
Terry A. Nelson Nelson & Lawless

Re: Cancellation of escrow (seller)

Submit cancellation instructions with a demand they sign or risk damages in a lawsuit. It isn't canceled until they do. Your broker is supposed to doing these things for you, or are you a FISBO stumbling through delusionally thinking that free anonymous hints [which are not legal advice] on the web are going to teach you everything you need to know to solve your problems? Consult with experienced counsel before taking any self guided action that could backfire.

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Answered on 11/29/08, 2:48 pm


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