Yes, because everyone starts in this business with 10 years of experience …
I don’t have the experience, and there are many others like me. I hope to get to the point where I can put contracts on properties without inspection contingencies. But right now, I can’t. Until then, it’s not a “weasel clause” it’s a legitimate requirement for me to make sure that the deal is sound. Which means you’ll be able to step in and pick up deals quicker than I can, but that’s my problem until I get the experience.
Now Pete’s original post sounds like he just got a case of cold feet with respect to how much work was needed. But, it’s quite possible that I could make a rough estimate of $15k in repairs on my walkthrough then revise that to $25k after an inspector’s walkthrough. They may find code violations, necessary upgrades, etc that I hadn’t planned on fixing in my estimate. And this $10k swing isn’t huge, but could be enough to make me not want to do it.
Seller wont return my deposit what do I do? - Posted by Pete CA
Posted by Pete CA on November 13, 2006 at 20:26:30:
I put a $1500 deposit into escrow to buy a fixer in San Bernardino, CA.
I decided it needed too much work to be a good flip so I cancelled the escrow.
Escrow released my funds way before they were supposed to and now the sellers wont give me back the $1500. I never lifted any contingencies.
What can I do?
I researched the seller’s agent and they have numerous negative items with the DRE. Seller’s agent has not returned calls and refuses to contact the sellers on my behalf.
Re: Seller wont return my deposit what do I do? - Posted by Pete CA
Posted by Pete CA on November 16, 2006 at 03:22:51:
Here’s an update on this issue. I tried for weeks to have my agent talk to escrow and explain why I withdrew my offer and ask to have them release funds. My agent has switched offices and is now a sales agent for KB Homes. She never returns my calls and when she does she says “oh sorry about not calling you back yesterday.” after it’s been a week and a half since I had last talked to her lol. I said screw it let me figure out what to do. I hunted down the seller’s agent who gave me the phone number to escrow and the phone number to the sellers. Turns out escrow never released anything because they had never been told to (good job). My agent didnt know where my money had been the whole time, she was just stringing me along because she was changing jobs…and just lied to me. I then called the seller and explained why I had withdrawn my offer. He said, “well we already sold the house to someone else…but all the confusion that you caused by making that offer caused me and my family extreeeeem hardship…we didnt know if you were going to buy the house or not” (duh…) I listened to this slimeball sounding guy go on and on about how much pain and agony i had caused him blah blah blah (i made the offer and withdrew after 14 days…that’s a whole lot of hardship i caused him) Anywho, long story short the guy feels that he deserves some money for being lied to. I said how does $250 of the $1500 sound. He said “YAAAH THAT SOUNDS GREEAAT!” End of story. I had escrow fax over the cancellation instructions, signed them and faxed them back. He did the same. That dang loser made $250 for nothing lol.
Also, thank you for so many suggestions and ideas they were all much appreciated.
Re: Seller wont return my deposit what do I do? - Posted by Mike-OH
Posted by Mike-OH on November 14, 2006 at 15:01:41:
This is exactly what happens when you play all these silly games. In my opinion, it is foolish to tie up someone’s property if you don’t know whether or not you will buy it. Go look at the property, make a reasonable offer, and then follow through. Don’t use weasel clauses to get out of things. I’d say accept the responsibility for your actions; learn a lesson; and move on.
Posted by John Merchant on November 14, 2006 at 12:03:21:
I’d send escrow co. a certified letter demanding they send your $1500 immediately…and if/when they fail to do so, file a CA small claim against them AND the Seller in your small claims court.
In most states nowadays a suit in SC Court is “filed” by your standing at the counter and filling out a one page complaint form. Very simple.
Further,lawyers cannot appear for their clients in SC courts so you’ll all be equals in that courtroom…and I’d say that chances are good you’ll get your money back.
Since a big reason for using an escrow service is to have a neutral third party hold money and documents, what authority did escrow have to release your funds to seller prior to removal of contingencies and close of escrow?
Is this a department of corporations (independant) escrow company, part of a title insurance company, a division of a real estate brokerage, or what? I can see them holding your funds after you cancel pursuant to liquidated damages clause, but even then they can’t distribute without written mutual agreements directing them to pay the injured party (seller in this case) or seller getting a judgment and a writ of execution to garnish funds in escrow (rarely happens in CA).
So, your remedies are going to be aimed at escrow company, its insurance carrier, and the agency that governs and enforces their practices, depending on the type of escrow company, as indicated above.
Re: Seller wont return my deposit what do I do? - Posted by Kristine-CA
Posted by Kristine-CA on November 13, 2006 at 22:57:43:
You can cancel the escrow but the contract still stands. What do you
mean that escrow released the funds before they were supposed to?
Escrow releases funds per the escrow instructions and/or contract.
What does your contract say? What contingencies? What time frame?
If there was an agent involved then you probably used the CRA
contract–what contingencies did you add?
If escrow made a mistake, you go to escrow and demand to made
whole (and of course they will go to seller to try to collect the money).
Re: Seller wont return my deposit what do I do? - Posted by Natalie-VA
Posted by Natalie-VA on November 16, 2006 at 19:52:39:
Pete,
It sounds like your agent is the real loser here. Your agent must keep an accounting of any funds collected on your behalf, whether they were in her escrow or not. You should report her to your state licensing authority for the accounting issue and for not handling this transaction properly. People don’t like working with agents because of people like her, and unless they get reported, they will continue to do business the same way.
Re: Seller wont return my deposit what do I do? - Posted by Don (VA)
Posted by Don (VA) on November 16, 2006 at 16:43:29:
The sellers may not have been without fault, but put yourself in their shoes. They have a house for sale. You make an offer. Money goes into escrow. Then…
As you found out, your agent “was just stringing me along…just lied to me.” And she “never returns my calls.”
OK. Now, imagine you’re the seller. You want to know what’s going on with that first offer from Pete. The sellers probably contacted their agent who, in turn, tried to contact your agent to ask, “Hey, what’s the deal?” But if your agent never returned your calls…was just stringing you along…don’t you think it’s possible that your agent was doing pretty much the same thing with the seller’s agent? I think it’s pretty likely that was the case. So the seller’s agent probably was telling the seller: “I don’t know what’s up. The buyer’s agent isn’t returning my calls.” Or even worse, along the lines of the deception and “stringing along” you describe, maybe your agent was acting the same way with the seller’s agent, stringing her along and telling her everything was fine. But, meanwhile, you’d decided–for understandable reasons–to cancel the deal. Only the sellers didn’t know that.
Who knows what your agent told their agent who told the sellers. But there very likely was confusion. And they probably didn’t know if you were going to buy the house. Selling a house is often an emotional experience…and being left to slowly twist in the wind, as may well have happened to the seller through the actions of your agent, can lead to emotional pain and agony.
The seller felt he was lied to? Hmmm…kind of like you felt you were lied to? Maybe the seller wasn’t the slimeball after all. Sounds like you and the seller might have something in common there.
Wow, I’d say that’s a bit harsh. What’s the point of inspection contingencies if everyone buys everything they put a contract on?
Seller represents a property as needing a new kitchen and bath. You check it out, and to your (untrained) eye the kitchen and bath is all that looks wrong. You put a contract on it subject to a formal inspection by a qualified contractor, with a $1k deposit. Contractor tells you the foundation is shifting and needs $20k in work. It’s no longer a good deal. So that’s the buyer’s fault, and they deserve to lose their $1k?
Posted by Mark (SDCA) on November 15, 2006 at 14:44:32:
Further,lawyers cannot appear for their clients in SC courts
True butt… they can file a motion to change to a diffrent (non-SC) court. I am doing this right now. Expect the escrow company’s attorneys to do the same.
Re: Seller wont return my deposit what do I do? - Posted by Mark (SDCA)
Posted by Mark (SDCA) on November 15, 2006 at 14:42:44:
Totally disagree. You should always have an inspection and a contingency clause. Im not a house inspector. I dont even intend to BE one. I pay someone to be one for me. But NOT before I signed contract. If the inspector finds “more stuff” THEN seller and I re-negotiate.
Re: Seller wont return my deposit what do I do? - Posted by Mike-OH
Posted by Mike-OH on November 14, 2006 at 20:34:50:
Joe,
If you are going to be a serious investor, you should become educated and not have an untrained eye. It should be easy to determine that the foundation has shifted and you should have found it during your inspection. I do not use weasel clauses. When I put a contract on a property, I buy it.