Legal Question in Real Estate Law in California

Re: Getting Deposit Back

The problem is it is more complicated than just getting the deposit back from the real Realtor. Your claim is against your broker. If he defrauded you your claim is more than just are lost deposit in all probability. You do not want to be asking this question on law guru. You wannabe face-to-face with an expert in real estate law. Anything else would not be sufficient for you in the situation. I'm sure you have a lot invested in this and you may be stuck with buying a house that you don't want. More importantly the seller doesn't know that if you what you say about the real estate agent is true. The lawyer could help all the way around. Good luck to you.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000

Re: Getting Deposit Back

You should be able to get the deposit back, but it would depend on the terms of the contract or deposit receipt. Even if the contract doesn't allow it, you may have a claim for fraud against the real estate broker. You should get your purchase documents to a real estate litigation attorney as soon as possible. Often these things can be resolved with a simple demand letter.

Re: Getting Deposit Back

The usual document you sign at the time you put up a deposit is a purchase agreement. Until it is accepted by the seller, it is merely an offer and can be retracted, in which case your deposit would be returned to you. However, once the seller accepts the offer you are in contract and backing out, except for a reason permitted under the contract's terms, is a breach of contract.

California law allows a seller to retain up to a 3% deposit as liquidated damages for the buyer's breach of the purchase agreement. Any excess must normally be refunded.

If an agent involved in the transaction has made mis-statements, you may have good reason to rescind (terminate) the purchase agreement and also to hold the agent liable for any damage you have sustained.

It is true that it is customary to make a deposit with an offer. Around $1,000 is not uncommon. Then, when the offer is accepted by the seller, it is customary to increase the deposit. None of this is set in stone. However, once the offer is accepted, you are no longer entitled to return of the deposit unless you have a permissible reason to rescind. No longer wanting the property is not, in itself, cause to be released from your contractual obligation.

Most real estate contracts have cautionary language in large, easily-read print near the top, warning the offeror that (s)he is entering into a binding contract, and to read it carefully before signing.

Since evaluating the situation, and especially the agent's possible misconduct, is rather technical, you should ask a local real-estate lawyer for a free initial consultation with respect to your rights and possible legal action against the seller and/or the agent.