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Tony Lewis, Summit Real Estate Group Valencia & Aliso Viejo (Summit Real Estate Group)

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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

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.

Mar 29, 2020 10:16 PM
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Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Why are they "unable"? 

Mar 30, 2020 05:08 AM
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Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

What does the agreement state?  

Mar 29, 2020 07:16 PM
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Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Sounds like a situation where a lawyer may actually earn his/her keep Tony Lewis 

Mar 29, 2020 07:12 PM
Rainmaker
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

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

 

Mar 30, 2020 07:04 AM
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Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

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!

Mar 29, 2020 10:16 PM
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

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.

Mar 29, 2020 09:18 PM
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Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Because it can't be recorded? There are ways...

Mar 29, 2020 07:54 PM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

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.

Mar 30, 2020 07:32 AM
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Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

Need more information. What are you leaving out?

Mar 30, 2020 07:13 AM
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Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It's force majeure; buyer should be protected.

Mar 30, 2020 06:50 AM
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Ask for an extension due to the circumstances. Closing remotely is an option as well. Wish you the best on this Tony Lewis!

Mar 30, 2020 06:41 AM
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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"

Mar 30, 2020 05:53 AM
Rainmaker
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Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

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.

Mar 30, 2020 05:39 AM
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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

Mar 29, 2020 08:15 PM
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Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

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.

 

Mar 30, 2020 09:06 AM
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Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

"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. 

Mar 30, 2020 09:43 AM
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Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

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 . . . 

Mar 30, 2020 08:30 AM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Contact your attorney - this is a legal question. I am not licensed to practice law. 

Mar 30, 2020 08:28 AM
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Roy Kelley
Retired - Gaithersburg, MD

Follow the terms of the contract.

Mar 30, 2020 08:09 AM
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

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.   

Mar 30, 2020 07:51 AM
Rainmaker
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

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?

Mar 30, 2020 06:56 AM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

Mar 30, 2020 09:55 PM
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Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

The buyer would be in default if there were no local addendum making them not at fault for reasons of the virus.

Mar 30, 2020 07:41 PM