Legal Question in Real Estate Law in California
I have a loan agent that is not able to close in time. We have removed the loan contingency since the agent gave us a letter saying "please remove the contingency " and that he will be able to get this done.
He also changed banks on us midway without letting us know and then the other bank went through the appraisal again which took the additional time.
He says he had to change banks since the first bank denied me due to lack of enough credit. Which is really hard to believe since I have a credit score > 800 although I am a first time buyer.
At any rate now he is not able to close and the buyer insists we pay $200/day I do not think I should be paying that since he caused undue delay.
I want to understand if i have any legal recourse to make him pay the cost.
2 Answers from Attorneys
Generally, you will have no recourse. However, if he made specific promises that night change the scenario. Do you have any committments from him in writing?
www.michielawfirm.com
I can't understand why a loan agent woulf ask you to remove a contingency....the existence of the contingency does not affect the loan agent's duties. All the contingency does is protect you from bad consequences of not getting the loan on time, which is what has happened here. I'd get a second opinion, but it seems to me that asking you to remove the contingency before the deal was funded was professional negligence and is perhaps worthy of a suit.
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