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Cancelled Escrow Etiquette

By
Real Estate Broker/Owner with (831) 626-4000 CA #01772851 HI #RB-21268

Yes, there should be an etiquette for a cancelled escrow only because, who knows, the following could happen:

1. You will in all probability work with that agent again

2. You may even have another go at the property you just cancelled out of

3. And you need to be ok with your client, buyer or seller.

No, it's not fun to get the message that the buyer is backing out. Your seller certainly won't be happy when you tell him the news. In all likelyhood, the seller wants to try to hold onto the earnest money. You, the agent, have to tell him that he can't because etc. etc. If the other agent has handled the transaction in a professional manner, he/she has protected the buyer.

And you, the agent, need to take the news in a professional manner as well and continue with the cancellation paperwork to make sure there is a clean break. No animosity!!

If there is any animosity from any of the parties involved, it is bound to carry over into the future:

1. The seller may fire the listing agent, after all the deal went into escrow and the agent did not caution them that anything can happen to the deal until they get to the closing table and have signed everything.

2. The buyer may fire the buying agent (especially if they lose the earnest money).

3. The two "opposing" agents might make it a little personal, and that's not good for future business between them. Each needs to keep the respect of the other, and put this particular transaction behind them.

ALWAYS KEEP IT PROFESSIONAL.

 Tropical Flower

Posted by

Hella Mitschke Rothwell, Broker/Owner/REALTOR 

 

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________________________________________________________________

Hella Mitschke Rothwell (R)

Real Estate Broker/Owner/Realtor®
Licensed in California #01772851 & Hawaii #RB-21268

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Comments (8)

Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

Very good point. One has to handle these things very carefully and diplomatically. For all sorts of reasons.

Jan 06, 2012 05:48 PM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Jon: It's too easy to be caught up in the moment of disappointment. Cooler heads have to prevail, and that's us.

Jan 06, 2012 06:13 PM
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Best Hawaii Realtor!

One time, after going to the signing table, representing the seller, buyer had signed.  Two days later we were going to record.  On the morning before the planned recording, I am helping my seller help with the loading of the big moving van.  The van is about 3/4 loaded and we are figuring how to get on the last remaining pieces of furniture, when.......

escrow calls me to say the recording has been cancelled.  not to drag out the story, but the buyer had gone out and purchased a new corvette which disqualified him from the loan.  He LEGALLY got out of the transaction, and it caused me to lose the LISTING!

Jan 06, 2012 06:56 PM
Ron Cooks
The Real Estate Marketplace - Killeen, TX
Texas Real Estate, Ft Hood/Killeen Homes for Sale

You hit the nail on the head, ultimately, staying level headed for all concerned is the best option.

Jan 06, 2012 09:52 PM
Not a real person
San Diego, CA

Etiquette is the bridge that makes the world go round, but it's amazing how many people don't mind burning that bridge.

Jan 07, 2012 01:34 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Hella, we may not like a lot of things but handling them professionally is the only way to handle them correctly.  It works in every situation!

Jan 07, 2012 02:24 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Bruce: You were certainly the victim in that transaction. How could the seller blame you??

Ron: What helps is to go straight to the contract and decide who can do what. Hopefully, you had already done that BEFORE the contract was signed. Always have an exit strategy before signing!!

Russel: Even if it's a bad breakup, the agents on both sides should stay professional. Chances are they will (want to) work together again.

Silvia: You are absolutely correct. You don't want to get emotional and lose your cool. Helps no one.

 

Jan 07, 2012 03:07 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I just canceled the escrow today. I felt terrible since I really liked the listing agent and I know that sellers already planned all to move out. But the buyer after inspections decided it is too much work for them. Starting everything over...

Oct 17, 2013 04:50 PM