Legal Question in Real Estate Law in California
I signed a purchase agreement for a new construction in a P.U.D. in Los Angeles. I paid a deposit, and escrow is open. But now I've changed my mind. I want to pull out of the deal, but want to make sure I say the right thing. If I say I just changed my mind, I'm afraid they will not give me my deposit back. Is there another reason I can say that will increase my chances of getting my deposit back? The only contingency I have is a loan contingency. I have not yet signed anything in my escrow packet, and I have signed most of the disclosures, but not all of them. What can I say to get the deposit back?
1 Answer from Attorneys
There is no way to answer this without reviewing the documents and the details of where the transaction is. Generally you cannot just back out of a real estate deal. However, the one thing that it seems you could do is make sure you don't get the loan, and then when you get the denial say you are unable to remove the loan contingency. Technically if they find out you sabotaged your own loan application, they could still try to keep the deposit under the implied agreement of good faith and fair dealing, which requires you to take all reasonable steps to remove contingencies, but as long as they can resell the unit, the likelihood of them bothering with that legal fight is slim.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
