Expert: Michael McClure - 2/2/2009

Question
I am a buyer who canceled escrow (after signing a removal of all contingenies). What are my liabilities?  Reasons for canceling included:  (1) I waited a long time to receive disclosures regarding the HOA,(disclosures I didn't receive until after signing the contingency removal.  (2) Two days before the expiration of my purchase agreement, the seller sent me an addendum requesting an extension of escrow (to complete repairs they had previously agreed to complete) (3) We felt manipulated by the seller because they contractually agreed to certain repairs, but then via email communication, they refused to complete those repairs until we removed all contingencies.  Pressured to close escrow prior to our closing date, we started our HOA investigation, then signed off on the contingencies.  Several days later, we received very negative information regarding the HOA.  By then, we were two days away from our closing date, and on that same day, the seller sent us an Addendum agreeing to perform the repairs (which they had already previously agreed to do) with an additional line requesting to extend escrow another week (they did not sign the Addendum).  They also sent us an email, still refusing to order the work to complete the previously agreed upon repairs unless we sign their Addendum.  At which time, due to newly disclosed HOA information, and the non-contractual conditions made by the seller via email, refusing to complete the repairs until we met their demands, we decided to cancel escrow.  We felt as though the seller was behaving unethically and no longer wanted to complete the transaction.

Answer
Hello Rhonda....here in Calif., you can cancel escrow anytime before escrow closes.  You don't need to even say why....it's your escrow.  Call the escrow office and tell them you want your $$ back....too bad for the sellers and agent...they sound suspicious anyway!  
                            Good luck "~ M