Real Estate Law

Have Real Estate Law Questions? Ask a Real Estate Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Real Estate Law

What is my liability for not putting down a deposit? Just

Customer Question
What is my liability for...
What is my liability for not putting down a deposit?

Just entered into a purchase agreement (tomorrow will be the third day) and have not yet put down my deposit. If I need to back out now, what is my liability for simply not handing over the earnest money deposit?

The realtor put 3 days for removing contingency on inspections and tomorrow is 3rd day yet no inspection or reports were ordered.

There are multiple red flags around this deal that have just cropped up, including the realtor telling us that the appraisal won't come in high enough and we have to miraculously come up with at least $20K more for the loan to go through. She said we should continue and can cancel the agreement when appraisal comes out bad. Her reason for cancelling will be buyer decides not to continue. Is this valid reason for getting out of a contract because appraisal will go sour and appraisal contingency is unchecked (no contingency) ?

thanks
Submitted: 4 years ago.Category: Real Estate Law
Show More
Show Less
Ask Your Own Real Estate Law Question
Answered in 6 minutes by:
7/5/2013
Real Estate Lawyer: socrateaser, Lawyer replied 4 years ago
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,350
Experience: Attorney and Real Estate broker -- Retired (mostly)
Verified
Hello,

If you have a standard Cal. Ass. of Realtors residential purchase agreerment (CAR-RPA), then Section I (eye) should state that appraisal to value is a contingency of the agreement. So, if the purchase price is too high, then you can tell the seller that you want to back out now, and that if he/she forces you to go through with obtaining an appraisal from a licensed appraiser, that you will have no alternative but to sue the seller to recover the cost, since it could have been avoided, by the seller not having offered the property at such a high price.

Hope this helps.
Ask Your Own Real Estate Law Question
Customer reply replied 4 years ago
The realtor did not make appraisal a contingency. She unchecked it so that there's no contingency on appraisal.
What will happen in this scenario ? Also there's no section I on CAR form.
Real Estate Lawyer: socrateaser, Lawyer replied 4 years ago
Do you mean "your realtor" didn't make appraisal a contingency?
Ask Your Own Real Estate Law Question
Customer reply replied 4 years ago
She prepared the contract as such appraisal is not a contingency
Yes, my realtor prepared the contract.
Real Estate Lawyer: socrateaser, Lawyer replied 4 years ago
Well, I'll tell ya what. In my opinion, that little detail is a breach of loyalty, and you could sue your agent for any damages incurred.

Re the contract itself, your next step would be to write a rescission letter to the seller, stating that your immediate inspection suggests to you that the property is not worth anywhere near the asking price and that you believe it was substantially misrepresented as to its condition, therefore you are rescinding/cancelling effective immediately. More than likely he/she won't sue, because there's no money in escrow, yet, and it's just not worth the hassle. I've never heard of anyone suing before the earnest money was deposited (except in ultra-lux properties worth millions).

There are lots of other contingencies, such as failing to qualify for the loan (e.g., "I lost my job," is practically guaranteed to stop the deal, because it means you can't qualify with any lender). So, that would be the next alternative route out of the deal.

Hope this helps.
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,350
Experience: Attorney and Real Estate broker -- Retired (mostly)
Verified
socrateaser and 87 other Real Estate Law Specialists are ready to help you
Ask your own question now
Ask socrateaser Your Own Question
socrateaser
socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 39,350
39,350 Satisfied Customers
Experience: Attorney and Real Estate broker -- Retired (mostly)

socrateaser is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Tina

Tina

Lawyer

5,436 satisfied customers

17 years of legal experience including real estate law.

Barrister

Barrister

Lawyer

10,826 satisfied customers

16 years real estate, Realtor. Landlord 26 years

Infolawyer

Infolawyer

Lawyer

7,657 satisfied customers

Experienced lawyer

Ray

Ray

Lawyer

7,367 satisfied customers

Texas Attorney for 30 years dealing in real estate

LawTalk

LawTalk

Attorney

6,207 satisfied customers

I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.

Dimitry Esquire

Dimitry Esquire

Attorney

5,526 satisfied customers

JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin

Ely

Ely

Counselor at Law

4,899 satisfied customers

Qualified attorney in private practice including business, family, criminal, and real estate issues.

< Previous | Next >

Related Real Estate Law Questions
I want to escrow my own taxes and was told no. Also, lender
I want to escrow my own taxes and was told no. Also, lender is going to transfer my loan immediately and I fear there terms won't agree with my plans.No I have not been told who they will sell it to. … read more
P. Simmons
P. Simmons
Attorney
Doctoral Degree
34,889 satisfied customers
Well im refinancing my but the appraiser did my home n the
well im refinancing my but the appraiser did my home n the one next to it.he combined both he said i have a covered patio between the two homes. which takes part of both properties … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
The house we are buying is in escrow and they had an $85,000
Second opinion] The house we are buying is in escrow and they had an $85,000 water damage. We still want the house.The sellers are doing everything they can to have us back out, which we are not doing… read more
Seattle Scott
Seattle Scott
Private practice attorney
974 satisfied customers
The house we are buying is in escrow and they had an $85,000
The house we are buying is in escrow and they had an $85,000 water damage. We still want the house.The sellers are doing everything they can to have us back out, which we are not doing. Now, they're s… read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
I need help on the appraisal value of condo in Medford MA. I
I need help on the appraisal value of condo in Medford MA. I want to know if the home will likely appraise lower than the purchase price in which case we may end up needing more cash.My agent wants to… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
I listed my house for $315,000 and know it is escrow for the
I listed my house for $315,000 and know it is escrow for the asking price and know we have found out that the house has a lien on it about 7 years ago I had a loan Mod on the house I had a 1st and 2nd… read more
DrakeLAW
DrakeLAW
Juris Doctorate
831 satisfied customers
I am an appraiser and was called to testify in a divorce
I am an appraiser and was called to testify in a divorce case for a market value appraiser I did on behaf of the wife. The laywer for the husband has asked for all my records. USPAP says that I cannot… read more
Damien Bosco
Damien Bosco
2,990 satisfied customers
I have a purchase contract on a property. The appraisal
I have a purchase contract on a property. The appraisal revealed the square footage to be significantly less than the buyer advertised ( 2212 vs 1844 ). This changes the sq ft price from 178 to 214. C… read more
Damien Bosco
Damien Bosco
2,990 satisfied customers
We have a situation where $6,500 in a Holdback by the escrow
We have a situation where $6,500 in a Holdback by the escrow company was established that required that the Buyers must write a letter of release of the Holdback funds when particular work was complet… read more
Attyadvisor
Attyadvisor
Doctoral Degree
6,877 satisfied customers
I want to ask a real estate property appraiser some
I want to ask a real estate property appraiser some questions. I cannot seem to find that link … read more
P. Simmons
P. Simmons
Attorney
Doctoral Degree
34,889 satisfied customers
Is there case law involving escrow company and refinancing a
Is there case law involving escrow company and refinancing a home to a terminally ill client? … read more
Michael Bradley
Michael Bradley
JD
1,127 satisfied customers
Are there HUD restrictions on how much escrow a mortgage
Are there HUD restrictions on how much escrow a mortgage company can ask for? I found a rule under Additional Collections that says it can be no more than one-sixteenth of total annual requirements, b… read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
West real estate question. Can a bank or appraiser be held
West Virginia real estate question. Can a bank or appraiser be held liable of an appraisal. Basically an appraiser in WV provided the bank an appraisal for several lots on a golf course. The bank used… read more
Barrister
Barrister
Lawyer
Doctoral Degree
10,826 satisfied customers
Is it normal procedure to wire money to escrow agent (title
Is it normal procedure to wire money to escrow agent (title insurance company) at time of closing for a property? I believed i would be able to take a cashier's check at time of closing and receive my… read more
Attyadvisor
Attyadvisor
Doctoral Degree
6,877 satisfied customers
The county appraisal online is showing that my property is
The county appraisal online is showing that my property is listed under someone else should I be concern … read more
LawGuy
LawGuy
Juris Doctor
123 satisfied customers
I have a home that is appraised at 715000 and owe 324000
I have a home that is appraised at 715000 and owe 324000 mortgage on it. We bought it ten years ago at 424k. I am considering buying my spouse out at 50% in a divorce settlement. He can do the same if… read more
Ray
Ray
Lawyer
Doctoral Degree
7,367 satisfied customers
I need an expert escrow that can look at an escrow agreement
I need an expert escrow that can look at an escrow agreement and give me expert advice and has profession liability insurance for such advice … read more
WiseOwl58
WiseOwl58
JD Honors Graduate
3,487 satisfied customers
I have an issue with seller that appraisal is mich lower
I have an issue with seller that appraisal is mich lower than our contract price. They do not accept our pricr proposal amd they don't want to cancel the contract. … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
5,882 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x