Legal Question in Real Estate Law in California
Refund of deposit from Escrow
I am a buyer and put up $5000 deposit in escrow. The seller had a contingency in the purchase agreement that stated ''Buyer's deposit non-refundable if I cancel escrow after a 10 day inspection period.'' Right when I got in escrow, the sellers agent went out of town & wasnt available for exactly 9 days making it difficult to do my inspections (the place i was buying had tenants and getting on the property had to be coordinated w/them and the selling agent). When the selling agent returned we were able to get a 7 day signed extension from the seller to do my inspections. I completed my inspections within the 7 days and decided I didnt want to go forward w/purchase due to a lot of things wrong w/property. I issued a statement to escrow to cancel and issue back my deposit. Well when escrow sent out the cancellation instructions, the seller refuses to sign it.
Q: In paragraph 7 ''right of cancellation'' of the general provisions of the escrow instructions it states, ''unless written objection to cancellation is filed in your office ...within 10 days...you (escrow) is authorized to comply with such notice...
Does this above provision mean that escrow needs to refund my deposit provided seller does NOT object in writing?
2 Answers from Attorneys
Re: Refund of deposit from Escrow
Please contact my office at 714 363 0220 to set up an appointment. I would like to review your written documentation including any letters, notices, and lawsuits. We handle cases throughout California. We can review your documentation by fax and speak with you by phone.
Re: Refund of deposit from Escrow
Looking only at the portion you have quoted, I would agree with your interpretation. Whether or not escrow will actually return your deposit without signed instructions is another question. Often escrow companies act very conservatively in refunding money. In the meantime, advocate your position and if things don't improve, sit with a real estate attorney to review your options.
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