AboutErrica Cook Expertise I can answer any questions regarding buying or selling real estate in California. I can also answer questions about becoming a real estate agent in the state.
Experience I have been selling and training new agents here since 2002.
Question QUESTION: the buyer is in breach of contract; the buyer has initialed the box in paragraph 16. the seller has not initialed paragraph 16 or 17; yet, the bottom of the page is initialed by both buyer and seller.
the seller sold the house six months later about $75K lower.Is the seller entitled to any damages?
ANSWER: If the seller didn't initial the box for liquidated damages then that clause is NOT in effect. The initials at the bottom of the page only signify that they read the page.
As far as the seller being entitled to any damages, that depends on if any contingencies were removed in writing.
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QUESTION: yes the contingencies were removed in writing.
ANSWER: If the contingencies were removed in writing then the seller COULD HAVE tried to go after damages, but only during the original escrow. After letting the buyer out of contract there isn't much the seller can do. Also, the SELLER is the one that didn't initial liquidated damages, so that will make it more difficult for the seller to dry and recover any money.
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QUESTION: How could the seller have gone after the buyer? what do you mean by letting the buyer out of the contract? the funds have not been released part of the escrow instructions only if mutually agreed otherwise an order from the court to escrow would release the money to either side.
also what is the impact of not disclosing being a real estate broker/agent to seller?
Thank you so much for your time!
Answer If the seller sold the house 6 months later then why wasn't the original escrow canceled with funds returned to the appropriate parties?
The impact of not disclosing being a real estate agent is big. It is unethical to enter into a real estate agreement without disclosing if you are an agent. If that is the situation, the real estate agent should be reported to the board of Realtors. The theory is that someone who is a licensed real estate agent would have more knowledge of the transaction and possibly have an opportunity to do things with the contracts or transaction that could give themselves an advantage.
