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No escrow deposit or signed instructions but Buyer refuses to cancel.

By
Real Estate Broker/Owner with Move Up Properties CA BRE Lic 01193694

I have a situation where escrow never received the buyers deposit AND no escrow instructions have been executed by either party. We are now into this transaction for 2 months and the closing date is no later than 90 days from acceptance of the purchase agreement. Buyer still wants the home but will not deposit money or return signed instructions. Seller provides buyer with a notice to perform followed by a signed cancellation instruction. Buyer refuses to sign cancellation.

Seller is forced to open escrow elsewhere because the escrow company will not allow a new transaction to begin without a cancellation of the prior transaction signed by the buyer.

What constitutes a valid escrow? Nothing other than the listing agent sending over a fully executed purchase agreement to escrow pursuant to the deposit and executed escrow instructions.  The buyer must cancel an escrow that he refused to open through the deposit of funds and signed escrow docs. 

Not happy!

 

Posted by

Diane Wheatley, Broker

Real Estate Brokerage, Upland CA

 

(909) 815-4499 Direct Cell

CA DRE Broker Lic #01193694

 

 

Larry Riggs
Century 21 Redwood - Frederick, MD
GRI, SRS Your Frederick County Specialist

Certainly it would depend on the wording of the contract and your state law. If the buyer agreed, in writing to submit a deposit and did not do so then it would seem they are in default. I would suggest the seller consult a real estate attorney to determine their proper course of action.

Apr 24, 2013 08:58 AM