Legal Question in Real Estate Law in California
real estate deposit
I entered to an agreement to buy a a house which was going to start the constuction and be finishied on DEC 01. Builder is a well-known co. in CA. and required me to go through his loan person for pre-qualification and loan-approval. I already own a house and bearly make a mortgage payment for it. Their loan person told them I qualify based on no income varification type of loan. I made a $5,000 deposit. Now that I realized how they qualify me I do not want to farther continue buying the house but they tell me I lose my deposit what should I do?
3 Answers from Attorneys
Re: real estate deposit
Did you sign a contract with the builder? If so, I would need to look at it to determine what your rights and obligations are.
If you fax it to me at 925-394-3044, I will review it at no charge.
Re: real estate deposit
You probably have a deposit agreement/purchase contract with the builder. Usually these contain contingencies such as 'subject to financing reasonably satisfactory to buyer.' Look for the contingencies, if any, in your agreement. Then, if you have one that fits, raise it as the reason why the deal is off and your deposit should be refunded.
You will probably need some professional help, if you don't already have it. Do you have a real estate agent? Is there an escrow company? They have professionals who MIGHT be willing to help you for free. Otherwise, you should consult a lawyer in the county where the (new) house is located. Ask for a free consultation but be willing to pay for an hour or two of advice if necessary. It will be worth it.
Re: real estate deposit
Whether or not the deposit is returnable depends on the contract for the house that you signed.
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