Legal Question in Real Estate Law in California

Re: Cancellation of Escrow by Seller

I'm sorry to hear of your circumstances. It's hard to give an opinion without knowing the terms of the purchase agreement, which governs your right to pull out. Arbitration can be an option, but most likely the arbitrator is simply going to tell you to honor the contract.

If you fail to close the deal, the buyers have the right to start a specific performance lawsuit. If they win this lawsuit, the court will order title put in the buyers names and probably hold you liable for their attorneys' fees and court costs (plus you will have to pay your own). This is a mess you want to avoid.

The best thing to do is to see a real estate attorney with experience in litigation. The attorney will be able to review your documents and give you advice on whether you have a legal basis to cancel the contract. Don't delay, because waiting even a day or so could result in you blowing a deadline for getting out of the deal. I have many years of experience with real estate deals and would be happy to help you if your contact our office at 310.787.7577.

Re: Cancellation of Escrow by Seller

Not only California, but most states, are more likely to grant specific performance to a buyer than to a seller of real property, and for good reason. You are in the position of wanting to breach a contract that could perhaps be enforced against you by a judgment ordering sale to this buyer.

In my opinion, your choices include: (1) negotiate with the buyers. Perhaps pay them to release you from the contract. (2) find another place to live while you shop for a home. (3) endure the lawsuit and hope that your hard-luck story buys some sympathy from the judge. (4) if your contract calls for arbitration, the result would be the same as in court, except that an arbitrator rather than a judge would write the order, (5) consider the commission agreement you have with your broker -- you could be liable for a commission as well as legal fees if you try to, or succeed in, backing out, and (6) see if some other contingency in the contract provides a loophole (but most contingencies favor the buyer).

In trying to back out of a contract to sell real estate, you are always pretty much at the mercy of a non-defaulting buyer, whether in California or elsewhere.

Re: Cancellation of Escrow by Seller

I should have added to my prior response that cancellation of escrow is not the same as cancellation (rescission) of the sale contract. The escrow is just a process for facilitating the sale. Cancelling the escrow (which might not be that simple in itself) would not (in and of itself) affect your contract to sell.

Re: Cancellation of Escrow by Seller

You must look to see if there are any conditions in the contract for purchase that would allow revocation of the agreement.

Joel Selik

Attorney/Real Estate Broker

www.SelikLaw.com

800-894-2889

Re: Cancellation of Escrow by Seller

If you cannot negotiate a resolution, buyer can sue for specific performance of the contract. You should retain counsel to assist. Don Holben 800-685-6950

Re: Cancellation of Escrow by Seller

The California law works in favor of the party who has the best set of fax pursuant to what the law is. Neither plate nor defended, buyer or seller in real estate agreement is favored. In this case, through a horrible unfortunate set of circumstances, you wish to try and not sell your house. I cannot oblige you unless I would read over all of the documents but assuming that you did not in any manner make any of the purchase contingent on your ability to move into your parents house your stuck. That's really big give you the you're agreeable good arbitration but why would you are betrayed something that you would probably lose. If I were you I would immediately, and why you haven't done so I don't know why, get a real estate attorney who knows what he/he is doing to help you extracate yourself from the situation. Rather than look for a lawsuit or arbitration look to solve the problem in your favor. Basically, if you've signed an agreement and they have a right to buy it in meet all the requirements, you must sell and they could sue you for specific performance, damages and attorney's fees. Not a good situation for you. I've been practicing real estate law for over 30 years and while I haven't had a specific case like this I have dealt with numerous situations were I've had to pull my client out of the deal. If you wish to consult with me I am at 925 -- 945 -- 6000 in the San Francisco Bay Area.