Re: Arbitration process

I have handled a similar matter recently. There is a certain procedure that must be followed and it depends sometimes on the specific transaction and facts of the case. Sometimes a deposit is split in half as you describe, but other times not. Since I have not reviewed documents, and I do not know details of your case, I cannot advise you. You may contact my office if you wish, to see if there is anything I can do for you.

DISCLAIMER: No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion that you may rely on. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.

Re: Arbitration process

Technically you do not need an attorney to enter into arbitration, but you should certainly consider retaining one. The attorney will review the documents, help pick an arbitrator that is impartial and unbiased, and make the best legal arguments for you to recover your deposit.

In the very least, it is important that an attorney review the documents you signed so that he/she can help you anticipate the other side's arguments.

For more informatino on arbitration, you can go to http://www.adr.org/ or feel free to contact us to discuss your case further.

Best of Luck!

Re: Arbitration process

Technically you do not need an attorney to enter into arbitration, but you should certainly consider retaining one. The attorney will review the documents, help pick an arbitrator that is impartial and unbiased, and make the best legal arguments for you to recover your deposit.

In the very least, it is important that an attorney review the documents you signed so that he/she can help you anticipate the other side's arguments.

For more informatino on arbitration, you can go to http://www.adr.org/ or feel free to contact us to discuss your case further.

Best of Luck!

Re: Arbitration process

If you signed the standard C.A.R. contract, you probably need to Mediate before arbitration, otherwise you may lose your right to attorney's fees incurred as part of the arbitration.

Feel free to call to discuss the matter.

Re: Arbitration process

Before hiring an attorney to conduct mediation and/or arbitration with you, ask an attorney with real estate experience for a consultation on the likelihood of winning. Maybe you can get such a consultation for free, but it would make sense to pay for an hour or two of the attorney's time. The issue the attorney needs to look at is whether or not you carried out your obligation to meet the loan contingency in good faith and through reasonable efforts. Take the letter from the other side's attorney with you; also, the escrow instructions and the deposit receipt and contract.

Your agent, or better yet, the agent's broker, might be a good source of a recommendation for a lawyer. They have an obligation to assist you, and very possibly may bear some liability here if the contract was poorly drawn up, thus sticking you with being unable to get your deposit back when a contingency fails despite your making good-faith efforts to remove or satisfy the condition.

So, I think the first advice you need is an evaluation of your case by an attorney you pay to do that, and nothing else. Then, if the attorney can show you (convincingly) that you have a good case, and explain why, hire the attorney to do the rest of the job.

Part of the economic analysis you need to do (with assistance from your agent and attorney) before deciding to take legal action is the potential impact of any attorney-fee clause. There is such a clause in the form contracts that comes into play if the parties check the boxes and initial. The presence of an attorney-fee clause increases the stakes - kind of like a double-or-nothing deal; the loser pays the winner's attorney fees.

Re: Arbitration process

One cannot really give you meaningful advise without reviewing documents and provable facts. If there was a failure of a contingency within the time set aside for such an event, you are not liable for damages and you should sue the homeowner to recover your downpayment. The attorney has no right to payment from you unless you breached the contract and there is an attorneys fees provision in the contracts.