Expert: Jane Doe Date: 3/20/2008 Subject: CA Title/Escrow Company Holding Deposit
Question Hello:
We placed an offer on a house in May 2007 that was accepted, (offer was on CAR forms by our real estate agent) and opened escrow with a title company, placing $5,000 deposit into escrow. Before contingency period expired, we submitted an extension of time addendum for loan and inspection contingencies are there were some loan and inspection issues requiring more time than the contract originally specified. The sellers responded with a CAR form Cancellation of Contract and checked the box "deposit to be returned to buyer" and this form was sent to our escrow officer. Title did not return our deposit, and approximately 30 days later when we called them, they said that in addition to the CAR form they had their own special form of cancellation instructions that they wanted the buyer and seller to sign, and as the seller was refusing to sign it, they could not return our deposit. This title company is a CAR confirmed company that accepts the CAR Residential Purchase Agreement.
The house was sold to another buyer in July 2007.
The title company advised us to obtain a court order to get our deposit back. I spoke with a corporate manager recently of this title company to tell him of my problem and he said that the sellers verbally revoked their cancellation agreement in August 2007 and without mutual instructions they cannot release our deposit. This manager said that verbal instructions are legal and their company is trying to avoid a lawsuit from the seller. FYI, the seller is a high-profile attorney in the area and I'm not exactly what happened...
Answer Hello back Paul: I reviewed your information and I'm assuming your question addresses your desire to receive back your deposit. I am only a real estate sales agent and I believe your issue could be better addressed by an attorney. It is an important issue. Be sure to bring every single document you have, including requesting a copy of the check from the bank if it cleared. Best of luck. Keep at it. --Val
