Posted by River City on November 03, 2005 at 12:56:16:
The contract indicated that the home must appraise for the sales price or higher. Have you thought of lowering the sales price for him? If you can get him to agree to a lower sales price (for the amount of the appraisal) you can revive the contract. If not, then he is entitled to a refund of his deposit.
Please Help! - Posted by Michelle
Posted by Michelle on November 02, 2005 at 23:47:28:
I am in CA. I sold my house to a guy and we entered the contract on Sep 26. Since then I am waiting for him to get a loan. The escrow should close on Oct 20. But it didn’t. I then extended the escrow to Oct 31. He said that he is not planning to back off the deal at all and we should be able to close it on time. So he signed his docs and I signed mine.
I called him to see what is going on today. He said that he is not going to buy the house anymore as his lender refused to loan him money. I offered him to try one of my lender. But he just wanted to back out of the deal, period. Although he put $10,000 down initially as earnest money deposit. His argument was that on the CAR form I marked the section where says this agreement is contingent upon the property appraising at no less than the specified purchase price. He said that since the property was appraised for $22k less than the purchase price,he has the right to back out. However on the contract, we also marked no loan contingency.
My question is if I am entitled to have his deposit as the liquidated damage or I am just out of luck because of the appraisal contengency thing.
If I have the right to get the deposit,what step I should take to make it happen?
Your advice is highly appreciated.
Michelle