We are selling our ranch in Ca. Potential buyer put up $10,000 earnest money and entered a 30 day escrow. We moved across country and were out in time for close. Never heard from potential buyer again or RE agent. Money still with Title company, 6 months later. Our ranch is still listed and we are still showing it. Our RE agent says it won't interfere with new possible buyer. Is that true? Where do I go to find out for sure - I don't trust that my RE agent knows for sure.
2007-01-16 12:08:41 · 5 answers · asked by tater.bug3 1 in Business & Finance ➔ Renting & Real Estate
It depends:
1. When you entered escrow, did everyone sign the escrow instructions?
2. Did you and the Buyer initial the liquidated damages clause in the purchase contract?
If the liquidated damages clause was initialed by everyone in the purchase contract, then it shouldn't interfere with the closing of your new escrow. The contract requires that the parties go to arbitration before any court action is taken. Has anyone attempted to contact the Buyer or their agent?
The Buyer's earnest money deposit will not have an impact on your transaction. You can't demand that the title company relinquish the funds to you because they're a neutral party; they will require you and the Buyer to sign mutual cancellation instructions, and those instructions would have to state that the funds are to be forwarded to you. You can request that the title policy state their requirements for cancellation, and the disposition of the deposit, to you in writing if you want assurance. If you decide that you want to go after the deposit at a later date, you should contact a Real Estate attorney.
If you're not satisfied with their answer, do a search under the California Civil Code with a sub-category of real estate deposits. It's available on line.
The deposit in the old transaction should not hinder the closing of the new one.
2007-01-16 12:43:21 · answer #1 · answered by Le_Roche 6 · 3⤊ 0⤋
If you really want to invest in real estate you have to look for the long term and for that to happen and for you not to get into trouble the 100% has to make sense. If you dont have positive cash flow wherever you are trying to invest, forget it. If you are just hoping for appreciation which is what many speculators did, you are not investing, you are gambling. Get together with a Realtor/investor that can show you what real estate investing means so you dont get into trouble. As far as getting 100%, I am pretty sure you may be able to find it although it is hard to do for an "investment" property, but the interest you will end up paying wont be worth the "gamble".
2016-05-23 22:28:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
you should ask a real estate attorney to be 100% sure. But you'll probably be able to keep that money and sell the property if the potential buyer signed contingencies stating that they only have a 30day escrow.
2007-01-16 12:18:03 · answer #3 · answered by HBSL621 3 · 0⤊ 0⤋
Well I assume you set a closing date the first time. if you didn't sign an addendum extending the closing date, you no longer have a valid contract with the first buyer.
If the first buyer didnt specifically use a contingency set forth in the agreement to get out of the deal, YOU get the $10K for them defaulting.
2007-01-16 12:16:52 · answer #4 · answered by Anonymous · 2⤊ 0⤋
I am going to say yes. I would assume that because they never put up the full balance it should not affect the sale. This assumes that the deed is still in your name, if not then no.
2007-01-16 12:22:38 · answer #5 · answered by geo.plrd 4 · 0⤊ 0⤋