Legal Question in Real Estate Law in California

Re: Cancellation instructons

With all due respect I have never heard in 30 years of practice of purchasing a home on a contingency. If you meant you made an offer on a residence and put down a deposit subject to certain contingencies being met than I understand what you're talking about. Before anyone can give you a definitive answer you have to read your contract. Your deposit might have been forfeited if you were asking for it much later than you otherwise would've had a right to ask for it. Your contingency period of time may have expired before you asked for your money back. My first advices have an attorney read the agreement to you what your rights are. My next advices if you have the right habits under $5000 go to Small Claims Court. If you don't have the right to ask for the money back to go to court because that is illegal.

Re: Cancellation instructons

What part fell through? What does the contract or signed escrow instructions say? What is their reason for refusal. If the contingency was part of the contract, and the contingency failed and you gave proper notice, unless the deposit portion stated otherwise, you should get the deposit back. You should take immediate and strong decisive action.

Joel Selik

800-894-2889

Attorney/Licensed CA Real Estate Broker

Re: Cancellation instructons

if the terms of the escrow agreement dictate a return of your earnest money deposit under the cirdumstances, you are entitled to all of the applicable remedies under a breach of contract action. if you would like a free phone consultation regarding this matter and your legal rights and options thereafter, email us directly with your contact information today.

Re: Cancellation instructons

As long as you met all of the terms of the contract, and it allowed for the cancellation by you based upon one of the contingencies, you are entitled to a refund.

If it is less than $5000, you could probably go to small claims court. Include the escrow holder as a defendant. If more than $5000, you may need to sue in civil court.

In any case, real estate purchase contracts usually allow for attorney fees for the prevailing party. There is also a California statute that provides a penalty of up to $1000 for someone withholding the return of the deposit without a good faith basis. You may be entitled to that, as well.

Re: Cancellation instructons

The return of the deposit depends upon the wording in the contract and a liqudated damage clause. We would be happy to review your documentation and provide you with consultation.