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Jack R.
Jack R., Lawyer
Category: Real Estate Law
Satisfied Customers: 6147
Experience:  Mediator, part of the Ohio Save the Dream Foreclosure project
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We were selling our house and set to close escrow on Sept 27.

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We were selling our house and set to close escrow on Sept 27. On the 26th we were requested an extension until October 18th due to funding issues (buyer was waiting on an overtime check to close) we agreed and signed. However this past week we were told buyer needed a couple more days but that papers were ready to sign. When we arrived Friday to sign our papers- there were none. No loan docs had been prepared/sent. We were told by a friend realtor that our contract at that point was expired because we were never offered another extension form. We emailed Saturday saying we would like to cancel the contract since they failed to get their monies into escrow in time to close and docs were not prepared, and since the extension said to be "closed by October 18." Are we within our rights- we understand the contract to be done since they did not fulfill by the time specified. By the way we are located in California.

Thank you for choosing Just Answer. My name is XXXXX XXXXX I will assist you today. You can cancel the contract, for all practical purposes the contract has already been breached by the buyer and you are not required to complete the sale.

 

Unless the contract reads otherwise you may be entitled to keep the funds escrowed for the purchase. ( Note some contracts indicate that if financing cannot be completed the contract becomes null and void and escrow funds are to be returned to the buyer).

 

Your realtor should be able to explain what your rights are with respect to the escrowed money.

 

Please accept my answer with a rating of 3 or better so I may get credit for my response. If you have follow up questions please ask. Please note that paying the deposit does not cause funds to be disbursed until you rate my response (3 or greater).

Jack R. and 4 other Real Estate Law Specialists are ready to help you
Customer: replied 3 years ago.

Contract states all parties will use mediation or arbitration for any disputes. Do they have any grounds on taking us to either of those? We already released their deposit back to them.

The contract has been breached deposits returned, there is nothing left to mediate. The contract has been rescinded for all practical purposes.

Please accept my answer with a rating of 3 or better so I may get credit for my response. If you have follow up questions please ask. Please note that paying the deposit does not cause funds to be disbursed until you rate my response (3 or greater).

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