It’s not a matter of you don’t need to, it’s a matter of you can’t. This is the old story of a little bit of knowledge gone awry.
If a Buyer makes an offer on a house in the state of California and the seller accepts, and that acceptance is communicated back to the buyer, it is in contract.
There is no way in hell under California law that the buyer has three days just to have a remorse period with the seller, and cancel if he wants to for no reason.
If there was such a law don’t think the investors here would be tying up property and using the 3 day law as a tool and it would be common knowledge, plus real estate agents would have the common practice of not doing anything until the 3 days passed and that isn’t the case either.
So you’re applying a law that doesn’t apply to this situation, and misleading the California sellers and buyers. The only way I won’t think your an idiot is for you to supply the statute and the exact wording of the entire statute and then I would apologize and say I’m wrong, after checking it out of course.
But but in 52 years of investing in that state I’ve never heard of it, and in 42 years of being a broker I never heard of it, and unless some law has passed the last few years in California, while I’ve been receiving medical treatment elsewhere so that I’m totally unaware of it, that’s not going to happen.
We are selling my 90 year old Mothers house…We had buyers that gave $1,000 and a contract between the to realters was signed by both parties. Two days later the buyers siad they did not want the house. We were told that the $1,000 does not go to our Mother no explanation by their realator or ours…Why?
My real question here was…after you sign a contract, then you back out, the funds that are put in escrow should, and usually do go to the seller. We live in Illinois.Why does some sellers get the escrow funds and some don’t?
In some states, there is a statute that requires a seller allow a buyer to back out within a period of time. Two days sound like it qualifies. Ask your agent what the statute on “buyer’s remorse” is in your state. Also check your contract. There may be additional rights for the buyer in there. I know I require these in any contract that gets my signature.
Posted by River City on June 27, 2007 at 06:56:24:
Read your contract. Not meaning to sound rude, but, you may as well get over it and go on to the next purchaser. You only had two days into the contract. You might want to put a clause in the next contract stating terms where the earnest money would be forfeited to the seller.
Posted by Natalie-VA on July 09, 2007 at 20:08:43:
It really depends on the terms of the contract. There could have been a contingency that the buyer used. It’s really hard to give a specific answer in situations like this.
Posted by Natalie-VA on June 28, 2007 at 08:33:38:
Rich,
Are you referring to a “right to rescission”? I’ve never heard of this being used in a real estate contract. Are you aware of states where it’s allowed?
The State of California allows, I think its 2 or 3 days, to back out of a contract. Its called “buyer’s remorse” here. Its not just Real Estate, but includes car purchase contracts and other similar situations where you don’t have actual possession yet.
Unless California has passed some law in the last few years that I’m unaware of, there is no such law in California that applies to real estate.
Under the foreclosure law there is a 5 day period for certain deals but the seller has that right, not the buyer.
And if a buyer told me they wanted to cancel a real estate transaction under a buyers remorse right, I would be laughing all the way back to my office.