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Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I also find the differences between the states interesting.
In CA, we have a demand to close escrow form which gives the buyer 3 days to perform. It gives the seller the right to unilaterally cancel the agreement; bring legal action for damages including, but not limited to the EMD; And bring legal action for specific performance.
My attorney would probably write a letter for $200, I'm not buying the difference in attorney fees by region.
I also find the differences between the states interesting.
In CA, we have a demand to close escrow form which gives the buyer 3 days to perform. It gives the seller the right to unilaterally cancel the agreement; bring legal action for damages including, but not limited to the EMD; And bring legal action for specific performance.
My attorney would probably write a letter for $200, I'm not buying the difference in attorney fees by region.
The attorney fees were actuals from a couple of transactions. To review documents for a client who wanted a NY style closing at least on the sellers side was $500.
The fee difference may be urban versus not...but it is pretty consistently that high here for RE attorneys. Note that there are not more than a dozen reasonable ones in a city of two million.
Do you know of any seller(s) who got the escrow money from the buyer after the buyer bailed out?
If so, how did it all work out?
Snooper
I once had a buyer that did not show at closing. I was "told" by all that I could keep their escrow. I said give them back their escrow. I want those Aholes (the karma is bad....LOL) out of my life and let us get this house sold. One reason I did this was one of the buyers was a lawyer and I could see this going on and on and on when I wanted my house sold.
As I've said, I don't believe that to be accurate. I find it VERY difficult to believe that someone who states they do not want to buy your house can prevent you selling it to someone else. They only thing that person has any claim on at all is the money in the escrow, not your house. I'm not an attorney, and I doubt your agent is either. Call your attorney and ask the question.
Quote:
Originally Posted by Rakin
I agree with Bill above and believe your agent is full of Crap. He's giving you legal advice and it's not good. It would be worth a few hundred $$ to get the $8k earnest money for your damages or to get the house sold.
I might even be tempted to file suit for "Specific Performance" at this late date.
A strongly worded letter from an attorney might motivate these Buyers.
Quote:
Originally Posted by QuilterChick
Agree with Rakin. Collect the earnest money, plus damages which may include having to take a loss over and above the amount of earnest money in order to get the property sold; and any loss incurred to seller if he has damages on the purchase of another property, rent, moving expenses, etc. Throw the whole ball of wax at buyer in default.
Quote:
Originally Posted by oregonwoodsmoke
Stop Taking Your Legal Advice From A Real Estate Agent!
Get a lawyer to send them a strongly worded letter about specific performance and damages from breaking a contract. That will most likely tune them up and it will be the end of the issue.
I'm 100% in agreement with the above posters.
Quote:
Originally Posted by lvoc
Again you are mixing up east coast and west coast RE law. In the west the likelihood is that such a dispute will be handled by the RE community or the Small Claims Court system.
The cost of a consultation with an RE Attorney is likely to be $350 or more. A letter will probably take it over $500.
Most bar associations have a lawyer referral service which provides for an initial LOW COST consultation - usually under $100 in big metro areas and even lower elsewhere.
Recovering legal costs means a trial in District Court. That is above $5000. You may get it back presuming you win. But you will have to pay it up front.
Specific performance actions upon the part of the seller virtually never work and are prevented by a standard clause in our contracts limiting damages to the EMD.
In Nevada as in AZ the RE brokerage can maintain an escrow accout. Virtually no one does. We do however retain the check from the buyer and forward it to escrow upon opening of escrow.
Practically you might try offering the buyer a few thousand to terminate the escrow.
Perhaps the "no longer buyers" need to be presented with the possible penalties they could face for not cooperating:
Small claims court: Given the details provided - at the least, they would be liable for court costs over and above the amount of the EMD. Depending on state law, they could be penalized up to 3x the EMD. Even if they had no funds to pay, simply having the judgment against them could lead to future liens against any property they did buy in order to satisfy the judgment. Additionally, having that judgment reported to the credit agencies would hinder not only any future house purchase but also restrict their ability for a new rental should they need to move before purchasing.
At the least, at this point in time, they would lose their $8K.
Law suit for specific performance and/or damages: Interest paid by the Seller, loss of purchase price, rental expenses (based on anticipated move-out for closing); ad nauseaum.
THESE are the things an attorney versed in r/e law and litigation will bring to the attention of the "reluctant sellers".
I am having serious issues with the idea that the house can no longer be marketed or available for sale once the r-s miss the closing date. But then I'm not an attorney and join those strongly in favor of seeking the services of one:
<state/county> Bar Association Lawyer Referral Service
Again you are mixing up east coast and west coast RE law. In the west the likelihood is that such a dispute will be handled by the RE community or the Small Claims Court system.
The cost of a consultation with an RE Attorney is likely to be $350 or more. A letter will probably take it over $500.
Recovering legal costs means a trial in District Court. That is above $5000. You may get it back presuming you win. But you will have to pay it up front.
Specific performance actions upon the part of the seller virtually never work and are prevented by a standard clause in our contracts limiting damages to the EMD.
In Nevada as in AZ the RE brokerage can maintain an escrow accout. Virtually no one does. We do however retain the check from the buyer and forward it to escrow upon opening of escrow.
Practically you might try offering the buyer a few thousand to terminate the escrow.
Sorry, I'm not mixing up any east coast vs. west coast "law". I am not a lawyer, are you? In every case where there is an issue between buyer and seller where the answer can only come from an attorney, my advice is the same .... ask an attorney and pay for the advice.
Real estate law is STATE SPECIFIC. Not "coastal" specific, and not multi-state specific. Unlless you are an attorney, you cannot answer Snooper's inquiry. If you are a real estate agent, or have a valid real estate license, you still cannot advise Snooper. You cannot interpret disputed contracts unless you are an attorney. Even a paralegal cannot interpret and give advice on contract law, only an attorney. We know by your profile that you are a married male. Not that you are an attorney.
But thanks for trying. The OP needs legal advice; and whether or not he gets legal advice is his/her decision. We can guide, we cannot advise.
Sorry, I'm not mixing up any east coast vs. west coast "law". I am not a lawyer, are you? In every case where there is an issue between buyer and seller where the answer can only come from an attorney, my advice is the same .... ask an attorney and pay for the advice.
Real estate law is STATE SPECIFIC. Not "coastal" specific, and not multi-state specific. Unlless you are an attorney, you cannot answer Snooper's inquiry. If you are a real estate agent, or have a valid real estate license, you still cannot advise Snooper. You cannot interpret disputed contracts unless you are an attorney. Even a paralegal cannot interpret and give advice on contract law, only an attorney. We know by your profile that you are a married male. Not that you are an attorney.
But thanks for trying. The OP needs legal advice; and whether or not he gets legal advice is his/her decision. We can guide, we cannot advise.
And I am sorry for all practical purposes western RE Agent, as in Nevada, practice law - at least by eastern standards. We actually write contract clauses and modify the language in standard contracts. It is actually one of my pet hates. There are a couple of brokerages who counter with a 25% rewrite of the standard Association contract...much of it redundant.
To go to a lawyer in a RE dispute is quite reasonable. To expect that he is going to tell you something different than your agent is mostly poppycock. And the working agent may actually have seen more of this sort of thing than an Attorney and has certain resources, like Board mediation, that are not available without the RE Agent. Note here most RE lawyer here tend to be board members for that reason.
We have staff counsel that provides a ready review of how to proceed in such situations. In general his advice is exactly the same that I give...because I got it from him in the first place.
A heavy real estate dispute lies strictly in the domain of the lawyer. Light ones, such as this, are better handled at the Brokerage or Board level unless that fails. Then you can go to the lawyers.
To actually embark on a suit on such a matter puts everyone at risk to costs that can exceed the amount involved by factors of five or even ten. While winning may appear a certainty it never is...
So you need a lot of money on the line before the legal begal is drug in other than an advisor.
Perhaps the "no longer buyers" need to be presented with the possible penalties they could face for not cooperating:
Small claims court: Given the details provided - at the least, they would be liable for court costs over and above the amount of the EMD. Depending on state law, they could be penalized up to 3x the EMD. Even if they had no funds to pay, simply having the judgment against them could lead to future liens against any property they did buy in order to satisfy the judgment. Additionally, having that judgment reported to the credit agencies would hinder not only any future house purchase but also restrict their ability for a new rental should they need to move before purchasing.
At the least, at this point in time, they would lose their $8K.
Law suit for specific performance and/or damages: Interest paid by the Seller, loss of purchase price, rental expenses (based on anticipated move-out for closing); ad nauseaum.
THESE are the things an attorney versed in r/e law and litigation will bring to the attention of the "reluctant sellers".
I am having serious issues with the idea that the house can no longer be marketed or available for sale once the r-s miss the closing date. But then I'm not an attorney and join those strongly in favor of seeking the services of one:
<state/county> Bar Association Lawyer Referral Service
And there is some classically bad advice. You get a consultation on the cheap...but not from a lawyer who knows anything about the field. As I said there are perhaps a dozen maybe 15 lawyers in Las Vegas who are competent in a RE matter. The general neighborhood lawyer does not see enough RE action to be fully capable.
The guys who knows this stuff here generally charge $350 for an initial consult. You can get the generic for $100 or even free at Legal Aid. But unfortunately you get what you pay for.
And there is always a substantial degree of risk, as any attorney will tell you, in a Real Estate suit. The big problem is that the contracts are far from fool proof. The odds of the aggrieved party prevailing are high. But not perfect. And to lose is a disaster. Some of these things can easily cost you ten or more times what is at stake. RE Contracts are generally pretty nasty in that you have to pay the winners legal cost if you lose...so even if you reprsent yourself you can get nailed for the other sides $400 an hour guy.
That is why it virtually always pays to offer the other side a few thousand to resolve the matter. You don't get everything you are entitled to...but you don't take any risk either.
And there is some classically bad advice. You get a consultation on the cheap...but not from a lawyer who knows anything about the field. As I said there are perhaps a dozen maybe 15 lawyers in Las Vegas who are competent in a RE matter. The general neighborhood lawyer does not see enough RE action to be fully capable.
The guys who knows this stuff here generally charge $350 for an initial consult. You can get the generic for $100 or even free at Legal Aid. But unfortunately you get what you pay for.
And there is always a substantial degree of risk, as any attorney will tell you, in a Real Estate suit. The big problem is that the contracts are far from fool proof. The odds of the aggrieved party prevailing are high. But not perfect. And to lose is a disaster. Some of these things can easily cost you ten or more times what is at stake. RE Contracts are generally pretty nasty in that you have to pay the winners legal cost if you lose...so even if you reprsent yourself you can get nailed for the other sides $400 an hour guy.
That is why it virtually always pays to offer the other side a few thousand to resolve the matter. You don't get everything you are entitled to...but you don't take any risk either.
Before you knock a good program, it would be advisable to get your facts straight.
Fact: the aim and stated objective of Lawyer Referral Services is to provide a low cost initial consultation with a lawyer IN THE AREA OF EXPERTISE REQUIRED. Read it. Pick a city, state or county and look up LRS. In Nevada, it's the state bar and it's called the Lawyer Referral & Information Service and it's easy to request an attorney with specific area of expertise. Lawyer Referral & Information Service | State Bar Of Nevada
Fact: Legal Aid's purview is not within the scope of this thread. Look up Legal Aid.
Fact: The advice I gave is neither classic nor bad. The OP should at least have an initial consultation with a real estate lawyer. Whether the OP chooses to hire a lawyer should at least be based on the advice given by a lawyer.
Again you are mixing up east coast and west coast RE law. In the west the likelihood is that such a dispute will be handled by the RE community or the Small Claims Court system.
The cost of a consultation with an RE Attorney is likely to be $350 or more. A letter will probably take it over $500.
Recovering legal costs means a trial in District Court. That is above $5000. You may get it back presuming you win. But you will have to pay it up front.
I called a real estate lawyer about a similar escrow issue concerning the sale of my home last year and he answered my questions over the phone and didn't charge me. Sometimes that does happen.
I also called the state Real Estate Commission and an attorney there gave me free legal advice.
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We can guide, we cannot advise.
