Legal Question in Real Estate Law in California

Escrow/home purchase

My wife and I are in the process of buying a home. The seller's agent has been very contentious and difficult to work with. Against our better judgment we went with a 60 day escrow at the advice of our mortgage broker and at the request of the seller. About 40 days in our bank, Indymac, was shut down. We were able to secure a new loan from another company but they need more time to complete the process. They have asked that we extend the escrow by a week. The escrow company says we simply need to amend the papers, but to do so both parties must agree. The sellers have been pushing to stay longer in the house by requesting a rent back agreement, something my wife and I were against for a number of reasons. The seller's agent has taken the approach that by granting our request for an amendment and extending the time of the escrow period, they (the sellers) are doing us a favor and we must reciprocate by granting and additional one to two week rent back period (even though the new escrow period exceeds the period of time they originally requested). We intend to say no, but I would like to know what legal ground I stand on. Is there any liability on the sellers part by refusing to amend and letting the original escrow run out?


Asked on 7/13/08, 3:53 am

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Escrow/home purchase

The July 11, 2008 failure, and federal takeover, of IndyMac Bank, then your financing entity, is what the law terms a "force majeure" that ought to excuse the short delay in your performance under the sales contract. I think a court or arbitrator would find their position unreasonable, and yours reasonable.

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Answered on 7/13/08, 4:08 am


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