5,049,008
May depend on the issue of why they cannot close escrow and what's in the contract. We have a new Coronavirus addendum that deals with this issue in CA.
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Hella M. Rothwell, Bro...
Carmel by the Sea, CA
-
Thomas J. Nelson, REAL...
La Jolla, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
2,436,099
Why are they "unable"?
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Thomas J. Nelson, REAL...
La Jolla, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Michael Jacobs
Pasadena, CA
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
4,572,117
What does the agreement state?
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Hella M. Rothwell, Bro...
Carmel by the Sea, CA
-
Joan Cox
Denver, CO
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Debe Maxwell, CRS
Charlotte, NC
2,390,595
Sounds like a situation where a lawyer may actually earn his/her keep Tony Lewis
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Joan Cox
Denver, CO
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John Juarez
Fremont, CA
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Olga Simoncelli
New Fairfield, CT
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Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
1,311,397
Force majeure: unforeseeable circumstances that prevent someone from fulfilling a contract. Not an automatice solution. Could lead to arbitration or law suit if no agreement is reached.
We need input from Brian Sirota
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Candice A. Donofrio
Fort Mohave, AZ
-
Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
5,229,945
Without a Coronavirus Addendum, it's whatever the Contract says.
That said, I would hope that the seller understands the bird-in-hand theory!
Good luck, Tony!
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Joan Cox
Denver, CO
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
3,164,269
seller could keep their deposit if nothing in the contract prohibited it. We added a cornavirus stipulation to all our pendings that protects everyone in delay situations for up to 120 days.
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Candice A. Donofrio
Fort Mohave, AZ
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
637,434
Because it can't be recorded? There are ways...
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John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Debe Maxwell, CRS
Charlotte, NC
6,393,154
Was a CV addendum signed?
Most sellers would allow for an extension since if the first buyer is having problems with closing due to govt shutdowns then other buyers will likely have problems as well.
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Michael Jacobs
Pasadena, CA
-
Bob Crane
Stevens Point, WI
-
Kathleen Daniels, Prob...
San Jose, CA
231,948
Need more information. What are you leaving out?
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Michael Jacobs
Pasadena, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Bob "RealMan" Timm
Minot, ND
900,128
It's force majeure; buyer should be protected.
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Michael Jacobs
Pasadena, CA
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
3,125,663
Ask for an extension due to the circumstances. Closing remotely is an option as well. Wish you the best on this Tony Lewis!
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Michael Jacobs
Pasadena, CA
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
3,416,038
Under any other case I would say they lise their deposit. In this case with the virus, the buyer may have a case and seller should extend and be happy they still have a buyer. The buyer can sue and may win if the seller wants to keep it if your state is in a "Emergency"
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Michael Jacobs
Pasadena, CA
-
John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
921,504
If we have a willing seller and able buyer then what is needed in more clarity regarding 'due to coronavirus."
Since C-19 is not a party to the contract you got some splain'n to do.
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Michael Jacobs
Pasadena, CA
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John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
2,781,163
Well the corona virus addendum sites courses of action I believe. Check it to be sure. Refunds, performance and something else...I apologize for the vagueness. An attorney told me the other day when we were discussing the return of a deposit where it said non-refundable but it can be argued now that it is regardless of what it says. The virus allows this to be over-ruled
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John Juarez
Fremont, CA
-
Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
1,543,634
We have a CAR form for that. Delay the close and sit tight. But...
Why can't they close? Loan on hold? Notary not available? County Clerks closed? We just did a legal meeting about this last week at my (virtual) office.
Seller cannot keep the deposit unless the C-19 excuse is just that, an excuse. You can't bail from fear, you still need a legit reason to cancel without penalty or the seller is entitled to some if not all...pending mediation, arbitration or litigation per contractual procedure.
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Michael Jacobs
Pasadena, CA
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Thomas J. Nelson, REAL...
La Jolla, CA
417,221
"Unable to close due to COVID-19" this part of your question holds the answer. Most California contracts have the arbitration boxes checked. If they go to arbitration the seller does not get the deposit in 99% of the times, in this case I would assume 100%. It doesn't matter if they signed the new CAR form or not. Buyer can show on paper any one of a hundred reasons why they can't move forward: job loss, illness in family, quarantine fears, loss of money in stock market for down payment or reserves, lender unable to perform if they have a jumbo loan or a non QM loan they are poof gone... What is the reason buyer is providing in writing? From there you have the answer to the seller- if buyer lost his job they need to cancel quickly and get it back on the market. Tying up an arbitration or lawsuit which will be much slower than in the past due to closures and people not wanting to meet in person. My guess is Seller sees the $15000 or whatever dollar amount in escrow as money to help them through the now longer selling process. Sometimes it is best to cut your losses, make decisions on intellect and move fast. The market could go down and by December the house may sell for less.
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Michael Jacobs
Pasadena, CA
1,052,211
This is why our state has recently given us verbiage to address that event.
Does the CARPC have a Force Majeure clause?
AZ we have a 'Risk of Loss' clause that, even though it cites 'Act of God' (surprised someone hasn't asked that GOD be removed, eyeroll) it caps the seller's obligation to correct at 10% of purchase price beyond which either party can cancel and the other party usually gets the earnest.
I know. 10% to 'fix' WHAT? Thus, the new verbiage.
SO NOW I'M GONNA call Legal and update this later.
Our new verbiage does give buyer an out with their deposit . . .
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Michael Jacobs
Pasadena, CA
3,345,091
Contact your attorney - this is a legal question. I am not licensed to practice law.
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Michael Jacobs
Pasadena, CA
7,836,069
5,868,482
We have a new addendum to push out dates if for some reason a 3rd party cannot close, or the principals are quarantined due to being positive.
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Michael Jacobs
Pasadena, CA
1,239,901
In our area the pracice is extend for 30 days because title or lender not ready. After that the sellers have the right to keep all EMD and fire the listing agent for bringing such a wimp buyer. Where are the back up offers?
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Bob "RealMan" Timm
Minot, ND
1,502,998
There is the new Corona Virus Addendum (CVA) in Zipforms (since you're a fellow Californian) that would give the buyer another out and ability to get their deposit back... assuming both parties sign it.
3,383,334
The buyer would be in default if there were no local addendum making them not at fault for reasons of the virus.