Legal Question in Real Estate Law in California

Purchase agreement

My wife has entered into a Purchase Agreement. We are trying to back out of the deal. We have our down payment in stock investment through our friend who is a broker. The account is not under our name. We passed the 17 days contingency. Now the seller is asking for the 3% deposit totaling $21,750. We issued a check that bounce because we weren't able to get our money out of stock. My friend got sick and couldn't sell the stock and wire the money.

My wife is a Real Estate Agent. Now I'm being told that she can be reported to RE board for issuing a bounce check.

I was being pressured to get the proof of the money for the lender that I had no choice but to sell our stock and take--name removed--67,000 loss. But, the option to sell did not hit the criteria that's why the check bounce because I was issued a check by my friend.

We are trying to cancel the deal and the seller's agent is asking for the deposit.

Is there a way not to have to pay for the 3% deposit and have to pay for the seller's moving expense since they already hired the mover.


Asked on 10/23/07, 4:46 pm

3 Answers from Attorneys
Ryan P. McClure The Law Offices of Ryan P. McClure

Re: Purchase agreement

Mr. Berger is correct. There may be ways to unwind the deal. However, you need to have someone review the agreement that you signed to provide you with your potential options. I would seek the advice of an Attorney ASAP.

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Answered on 10/24/07, 2:20 pm
Robert Mccoy Law Office Of Robert McCoy

Re: Purchase agreement

Generally, you have to give up your deposit (up to 3% of purchase price) in order to get out of your purchase contract. Look at your contract, there probably is a liquidated damages clause which means you don't have to pay an amount in addition to the deposit for things like the seller's moving costs. There are a few ways to get your money back, like filing bankruptcy or claiming the seller failed to make a material disclosure; but each of these ways has serious side effects.

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Answered on 10/24/07, 7:02 pm
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Purchase agreement

There are typically many ways in which the buyer can back out of a real estate deal. To know if any such options are available to you, I'd have to review your contract and discuss the facts with you. Please contact me if you wish to discuss further.

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Answered on 10/23/07, 5:13 pm


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