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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10238
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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Down payment check which was paid but

Customer Question

down payment check which was paid for safekeeping only but negotiated/deposited and collected by the Realty Company pending the start of signing of escrow? How to cancel
transaction and refund buck the money?
Submitted: 1 year ago.
Category: Real Estate Law
Customer: replied 1 year ago.
Aside from the check that I gave them, I was lured to sign a piece of paper that without
my knowledge has a penalty clause to confiscate the money if I will not proceed with
the transaction of buying that parcel of land, 2.5 acre in area.
Customer: replied 1 year ago.
There is only 1 property that was shown to us on a Monday, May30, 2015 and the following day the agent hypnotized us, I think and my fiancee and I gave the check and sign the 1 piece of paper the following day, Tuesday, 31st May 2015.
Expert:  CalAttorney2 replied 1 year ago.
Dear Customer, I am sorry to learn of this matter.Unfortunately I have a feeling the "one piece of paper" you signed was a property purchase agreement, and the money you paid by check was a deposit.You need to carefully review this paper - it is likely a binding contract that you are going to be held to - parties are deemed to have read and understood papers that they sign (I understand that in the course of buying property this may be unfair, but understand this is the way in which the courts are going to interpret this document, so you need to view it from that perspective, and read the document carefully - there may be other reasons you can terminate the sale agreement based on the actual terms in it - but trying to terminate it based on your misunderstanding of what you signed is probably not going to be one of them).You can try filing a suit against the escrow company or your agent based on breach of fiduciary duty, etc. (I don't know how strong a case you have), but if you do choose this avenue, don't pursue it without counsel, these actions are based heavily on expert testimony and they are procedurally complex, you don't want to compromise an already tentative case based on missing a procedural step.
Customer: replied 1 year ago.
There is no escrow yet, it just happened so quick. When I told them that I am backing out, they told me the escrow papers will delivered the following day but I will not proceed anymore, this is when I wad told that the refund will be acted upon by the realty firm, no formal notice yet from both parties.
Expert:  CalAttorney2 replied 1 year ago.
You need to carefully read the paper you signed. This is what you are going to be bound by. I cannot tell you what the terms of your contract are, but the terms of that written agreement are what you are going to be held to.If there is no clause that holds you to this penalty, then they cannot hold you to it.

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