Legal Question in Real Estate Law in California

escrow expenses

Our buyer did not have the money in his account when the verification of funds was done; however the bank said it was there. We proceeded to have our furniture packed by a moving company and when the deposit was not made by the buyer, we had to have it unpacked etc. Our expenses have totaled over $3400...can we sue them for this $? They finally did give our broker a cashier's check but the broker says we cannot recover any of the expenses from the buyer even tho' it was their fault and/or fraud that caused the extra expenses. Is that true? What can we do? This is a lot of money for us older (73 & 57 on disability) can afford to lose!! Thank you very much!!!


Asked on 11/13/06, 11:02 pm

2 Answers from Attorneys
H.M. Torrey The Law Offices of H.M. Torrey

Re: escrow expenses

If there was negligence and/or fraud committed, by no fault of your own, then you would have legal standing to sue in small claims court for your damages caused by the buyer, broker and/or lender at issue. You should retain an affordable attorney to assist you with a legal demand letter and/or filing your complaint in small claims court promptly hereafter. For such assistance, contact us today for a free phone consultation.

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Answered on 11/14/06, 1:28 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: escrow expenses

No, it's not true; the broker is not a lawyer and is probably trying to prevent trouble that might implicate him, or cause him to lose a commission. I'm not saying that you are assured of winning; I'm only saying that you have grounds to file suit and that you might win.

Step one is to review your contract with the buyer (and with the broker, too) and see whether they call for mediation or arbitration, or whether you can proceed directly with suit.

If you can sue before mediation or instead of going to arbitration, then consult with your county small-claims advisor and/or get a self-help law book on how to file, serve, win and collect in small claims court.

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Answered on 11/14/06, 12:31 am


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