QUESTION
We are in escrow on a home purchase and our Seller just sent us a Notice of Cancellation. What do we do?
Asked on Oct 08th, 2020 on Real Estate - California
More details to this question:
My wife and entered into a Residential Purchase Agreement with a Seller on 9/24. Up to this point, we have acted and performed in accordance with the RPA and have released all contingencies. This morning the Seller sent us a Cancellation of Contract, Release of Deposit, and Cancellation of Escrow notice. We believe the reason behind this cancellation is so that he can put his home back on the market at a higher list price and he may even have another buyer in mind (speculating). My wife and I do not accept the cancellation and wish continue with the purchase. We have spent a lot of time, effort and money on this transaction and do not wish to go quietly.
1 ANSWER
1 Award
Hello. If you indeed have met your burden under the contract and there is no contractual clause allowing the buyer to back out of the RPA, you can force the seller to sell to you. It would be called a "Specific Performance" action and you would be able to place a lien on the property to prevent the seller from selling to another party. First, give him notice in writing (or request your realtor to give notice) of the fact that you do not accept the cancellation. The terms of the agreement obviously control your situation, so I am a little hesitant to promise too much, but it sounds like your have a case without knowing more.
Let me know if you need or want my help. I have prosecuted several of these type of cases, especially when the market was hot and prices rose before escrow could close!
Answered on Oct 12th, 2020 at 8:12 AM