Legal Question in Real Estate Law in California
Delays in closing escrow
I have had numerous issues in closing escrow - everything from lender incorrectly typing loan docs with wrong interest rate to seller not vacating after close.
Can I take the seller's agent and escrow company (Seller�s choice) to small claims for expenses incurred due to delayed close. Escrow company lost signed loan docs. I was informed 1 week later, when I was notified that I had to re-sign docs. (Also, escrow co. did not have me sign notary log for new loan docs and refused to give me a copy of new docs.) Once new loan docs were signed, seller's agent did not get seller's SSN and escrow instructions to the escrow for 10 days. I did not get keys for 1 week after close � seller would not vacate. Estimated additional expenses due to delay in closing to be is $5,900. Do I have a case against the escrow co and seller's agent - breach of contract, professional malpractice? There is an arbitration clause in the purchase agmt, which I was required to initial. Small claims is excluded from mediation/arbitration. Does this include claims against escrow and brokers?
4 Answers from Attorneys
Re: Delays in closing escrow
Arbitration may be advisable. Please contact our office for review of your documentation and for us to provide you with consultation.
Re: Delays in closing escrow
It sounds like you may have a claim. Jurisdiction in small claims court is under $5,000 against each party. If you have a mediation and/or arbitration clause in your agreement, you should make a demand (which can be a simple letter) that the parties proceed to one of these options. If you proceed directly to small claims court, the other side can oppose it on the basis that you failed to comply with the mediation and/or arbitration clauses and the court may dismiss your claim without prejudice. On the other hand, if your small claims complaint is not challenged on these grounds, this may be the quickest resolution. If your damages are measurable, it certainly sounds worth pursuing through one of these methods. I would suggest that you first make a written arbitration demand and if they don't respond, file a small claims action.
Re: Delays in closing escrow
Your arbitration clause is binding re large and small claims likely vs realtors and seller. Appears you may have claims against both. Call to discuss. 800-685-6950
Re: Delays in closing escrow
It sounds like you have a good case. The seller certainly has to vacate once escrow is closed. No questions about that, unless, there was some extensions granted or delay. Should you have a case, then, there is an attorneys fee clause allowing you recovery of fees. Of course, the purchase and escrow documents would need to be reviewed. I am available any time today (9/4) or monday (9/8) to meet with you to discuss this matter. Please contact us at your earliest convenience. Good luck and thanks for inquiring.
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