I am a cash buyer of $500000 single family home in California. I released the contengency already, but had to back out of the purchase contract because my parent home got destroyed in natural disaster a couple of days before closing and can't afford to pay all cash to buy the home any more. I have signed CAR form both part 1. the cancellation of contract and 2.Release of deposit and cancellation of Escrow (Seller to release $2500 out of total amount $5000 to buyer). Could not get any response from the seller agent. But I noticed that the seller relists the house on the market two days later that I signed. Is the seller allowed to get into contract with another buyer and legally allowed to open new escrow to complete the transition since the current escrow with me is not settled and closed yet? Doesn't the seller have to sign it on the cancellation CAR form in order to confirm cancellation? What should I do next?
When you signed the CC form, you cancelled the contract. If the Seller did not countersign the second portion of the form (the escrow cancellation and deposit release) the deposit will be kept in escrow or ultimately delivered to the Superior Court for safeguarding. If a good faith dispute exists over the deposit, you will need to demand mediation and ultimately arbitration, if a compromise cannot be reached and those dispute resolution procedures are stipulated in the contract. If the seller is refusing to sign the release in bad faith then you might be entitled to up to $1000 and statutory damages, plus the amount of your deposit. I suggest you have the file reviewed by a real estate attorney and then ultimately make a demand for return of the deposit and cancellation of the escrow. Regardless, however, because you canceled the contract, the seller may list the property once again and even open a new escrow.
This response is not intended, nor should it be construed as legal advice. Any information provided is for educational purposes only and you accept such information at your own risk. To schedule an appointment for an attorney-client privileged consultation, contact me at 530-231-4949 or visit our website at www.lowenthalapc.com. The exchange of communications through Avvo.com and similar social media does not establish an attorney-client relationship with me or my office. Thank you.
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