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You are here: Experts > Cities/Towns > California > Real Estate: California > Earnest Money/Purchase Agreement
Expert: Errica Cook
Date: 2/14/2008
Subject: Earnest Money/Purchase Agreement
Question
QUESTION: My mother-in-law is selling her home, She received an offer which they signed and attached a counter offer which was accepted. First, the counter offer was signed by the seller on the 10th of the month, it appears that it wasn't delivered to them until the 15th and they didn't sign until the 19th,
First, When does the 17 day period start, the date Original Offer is signed or the date the Counter Offer is signed?
Second, According to the RPA-CA and the counter, if the seller doesn't receive the Signed Offer back in 3 days or the Buyer receive the Signed Counter back in 3 days the "Offer shall be deemed revoked.."
The buyer completed inspections and is now trying to back out for unrelated reasons, she was informed they were backing out a week before close and was already moving out and they want all the earnest money returned. I don't think her realtor is working in her best interest as she should be....
Appreciate any help you can provide. :)
ANSWER: An offer is considered accepted when both parties have signed the offer/counter offer. So it sounds like the 19th would be acceptance.
If the buyer has NOT removed their contingencies in writing then they can back out and your mother in law doesn't really have any recourse. Her agent should have had the buyer remove all of their contingencies in writing at the 17 day mark.
I would check with escrow to see if that was done. In order for the buyers to get their deposits back your mother in law would need to sign something okaying that, and as long as she doesn't she can hold things up and inconvenience them a bit.
---------- FOLLOW-UP ----------
QUESTION: Just to follow up, they both had signed the offer on the 10th, but the seller also sent a counter offer, so the date would be the date the buyer accepted the counter offer?
Also, since the agreements state that must must be signed within 3 days, was it never really valid in the first place?
THANKS!
Answer
Well if the offer was signed by both originally, without the box "subject to attached counter offer" checked,then the counter offer doesn't really exist, unless escrow drew up an amendment that both parties signed. If that's the case then the 17 days started on the 10th.
As far as the expiration of the offer, if both parties signed it, even if it was past the 3 days, then it is still a valid contract. The three day revocation could have been put into use, but only before both parties accepted the offer.
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