Legal Question in Real Estate Law in California
Contract Binder
California requires that deposits and/or binders for real estate be handled by a third party. In this case, the Title Company has the deposit.
The sale fell through because of the buyer.
The buyer went to small claims court and charged that the seller would not return their deposit.
Bear in mind, the title company had the money.
The buyer lost but the judgement in favor of the seller, did not say what the disposition of the deposit was. He simply stated that the seller owned them no money.
My position is that the monies were paid to the seller as a binder even though the title company handles the cash.
In this case I believe that the money only need be given to the seller and the action is done.
Any other opinions?
If the Title Company will not release the money to the seller, what are the options?
1. Take them to court.
2. Get clearer guidance from small claims court.
3. ??
2 Answers from Attorneys
Re: Contract Binder
The Order from the Small Claims Court should be enough. If the Title Company does not accept it you can 1. ask for clarification/supplmental order from the Small Claims Court or 2. Sue Title Company for release of the funds in small claims court.
Joel Selik
800-894-2889
www.SelikLaw.com
Re: Contract Binder
Usually, the title company is named as a co-defendant so that they will receive an order from the court as well (they don't care who wins, they want to get the money out of their system).
Your question indicates that the court didn't order the seller to pay "any more money" to the buyer. The question is, did the court award the money at the title company to the seller, or was that question even addressed?
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