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I put an offer on a house in late November 2018, completed inspections, couldn't come to an agreement with the seller (who is also the broker, the house was flipped), and sent the signed papers to cancel the sale around December 15, 2018. The seller refused to sign the paperwork (and sent some immature text messages to my realtor), and said he will 'drag this out as long as possible' so I wouldn't get my earnest money back from the escrow account. He also disputed my demand to the escrow company to release the funds, but did not provide a reason. He then relisted the property for sale, while refusing to sign my cancellation. The property then went pending, and I waited for 8 weeks for him to sign the cancellation to release my earnest money.
On 02/01/2019 I filed a small claims suit requesting the funds be released, as well as $1000 for not having a good faith reason for not signing it (which is in our contract). On 02/04/2019, he magically signed the document to cancel the sale, and to release my funds (the paperwork had not yet been served to him). I later found out that on 02/04/2019 the house officially sold/closed to someone else.
Because I already have this lawsuit filed and paid for, I figure I might as well go to the court date and follow through. I am wondering if in addition to the $1000 for not having a good faith reasoning for not signing, I am also thinking of adding another $4k for breach of contract. He was still under contract with me, while he went through with the other sale. Any advice on this? Any chance I will win in SCC? Any statutes or laws that he violated in regards to the contract would be much appreciated.
Once you accepted the return of your escrow funds, your purchase cancellation was completed and you no longer have a claim against the buyer. There is nothing to sue for and all a seller will do is show you have already got your money and the basis for the suit no longer exists.
?? YOU decided to cancel, not the seller. The reason you gave was that you and the seller "couldn't come to an agreement" of terms. You were never "under contract", you were still negotiating. So, the seller was free to consider the other offer and accept it. Despite your accusations of "dragging this out", you also did get your earnest money back. But that's not enough...you want even more money for breach of a contract you did not even have. Drop it and move on.
Last edited by Parnassia; 02-09-2019 at 01:39 AM..
I put an offer on a house in late November 2018, completed inspections, couldn't come to an agreement with the seller (who is also the broker, the house was flipped), and sent the signed papers to cancel the sale around December 15, 2018. The seller refused to sign the paperwork (and sent some immature text messages to my realtor), and said he will 'drag this out as long as possible' so I wouldn't get my earnest money back from the escrow account. He also disputed my demand to the escrow company to release the funds, but did not provide a reason. He then relisted the property for sale, while refusing to sign my cancellation. The property then went pending, and I waited for 8 weeks for him to sign the cancellation to release my earnest money.
On 02/01/2019 I filed a small claims suit requesting the funds be released, as well as $1000 for not having a good faith reason for not signing it (which is in our contract). On 02/04/2019, he magically signed the document to cancel the sale, and to release my funds (the paperwork had not yet been served to him). I later found out that on 02/04/2019 the house officially sold/closed to someone else.
Because I already have this lawsuit filed and paid for, I figure I might as well go to the court date and follow through. I am wondering if in addition to the $1000 for not having a good faith reasoning for not signing, I am also thinking of adding another $4k for breach of contract. He was still under contract with me, while he went through with the other sale. Any advice on this? Any chance I will win in SCC? Any statutes or laws that he violated in regards to the contract would be much appreciated.
Those reading this thread who are in Florida, this is why you want your escrow held in a real estate broker's escrow account, NOT the title company's or with an attorney. In the event of a dispute, if the escrow is in a broker's escrow account, the state has a free dispute resolution process to determine to whom to disburse the escrow. No lawyers or legal fees required to get your money back.
Those in any state other than Florida can disregard this. Do any other states have a free escrow dispute and disbursement process?
Those reading this thread who are in Florida, this is why you want your escrow held in a real estate broker's escrow account, NOT the title company's or with an attorney. In the event of a dispute, if the escrow is in a broker's escrow account, the state has a free dispute resolution process to determine to whom to disburse the escrow. No lawyers or legal fees required to get your money back.
Those in any state other than Florida can disregard this. Do any other states have a free escrow dispute and disbursement process?
If I had the spare time to harass the realtor/seller, I'd let it go through the small claims court process and at least recover the filing fee and interest/penalty on the escrow. Any judge is going to rule that 8 weeks is unreasonable.
If that isn't enough, I'd file a complaint with the state licensing bureau and I'd make a call to the consumer affairs office in the state attorney general's office to see if they care. A realtor needs to have a license. They need to follow the law and not F with consumers. You're not going to get any money out of it but you can make them miserable if you're willing to press the point.
?? YOU decided to cancel, not the seller. The reason you gave was that you and the seller "couldn't come to an agreement" of terms. You were never "under contract", you were still negotiating. So, the seller was free to consider the other offer and accept it. Despite your accusations of "dragging this out", you also did get your earnest money back. But that's not enough...you want even more money for breach of a contract you did not even have. Drop it and move on.
I disagree that we weren't under contract. He signed paperwork and agreed to our offer, took the place off the market, and we had several inspections completed which we provided to him. We then sent our request to repair (a LOT, giant hole in ceiling, water under house found upon inspection, sewer line in yard was busted and had tree roots growing through it which needed replacement), and credits we wanted, to which he denied almost everything. I believe we were under contract once we signed all the paperwork.
Quote:
Originally Posted by Diana Holbrook
It ~might~ help to say where you are.
Everything depends on the contract you signed, and the form and procedures vary quite a bit by locale.
Have to say oldtrader's post rings with a certain clarity and simplicity.
Right, sorry! This is in California.
Quote:
Originally Posted by Okey Dokie
“Couldn’t come to an agreement with the seller” - on what? Repairs?
Correct, repairs. We paid for several inspections which found numerous items (obvious giant hole in roof which caused a huge bubble of water in ceiling, standing water under the house, plumber found the sewer pipe was disconnected from the city line and had tree roots growing into it, along with several items not up to code with the city, AND numerous open permits on the house that were never finished). We sent a request to repair and credits wanted to close on the house, which he denied almost all of. We then cancelled the contract, and he refused to sign paperwork in order to release funds, relisted the house, and only signed the paperwork once the house closed to someone else.
Quote:
Originally Posted by GeoffD
If I had the spare time to harass the realtor/seller, I'd let it go through the small claims court process and at least recover the filing fee and interest/penalty on the escrow. Any judge is going to rule that 8 weeks is unreasonable.
If that isn't enough, I'd file a complaint with the state licensing bureau and I'd make a call to the consumer affairs office in the state attorney general's office to see if they care. A realtor needs to have a license. They need to follow the law and not F with consumers. You're not going to get any money out of it but you can make them miserable if you're willing to press the point.
I filed a complaint right away with the Dept. ofReal Estate, however they said it is a civil issue. I guess I can go just for the $50 SCC filing fee I paid, and ask for more to see if the judge agrees. In CA, the seller is supposed to release ALL disclosures on the property. I am wondering if he let the new buyers know everything WE found wrong with the house (we paid for general house inspection, plumbing, pest, fireplace, and appraisal). I may just give the new owners our inspections, to see if they are aware of all the issues.
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