Release of deposit - and Sacramento RE lawyer?

Release of deposit - and Sacramento RE lawyer?

Oakland, CA · Member since 2015 · 23 posts · 7 votes

I've got a seller who is refusing to release my EMD on a deal, despite the very clear contract violations on their end (standard CAR contract). I had sent a notice to perform, and then ultimately the contract period ended, and I formally cancelled at that point due to seller non-performance. I have since moved on to a different agent as well - and the agent who represented me is completely checked out of this, leaving me on my own.

After initially refusing to release the deposit, the seller's agent emailed me weeks later saying they would agree to release funds to avoid small claims court. But the Escrow company still hasn't gotten their instructions, and won't release until there is mutual agreement. Now, the seller's agent is simply not returning any correspondence, leaving me little option.

Per the CAR contract - it's pretty cut-and-dry about pursuing small claims court, and without good faith reasons -they can be liable for treble (triple) damages as well as legal fees incurred on my end.

It's not a huge sum of money, but given that it's mine, and that the seller will be liable for legal fees associated - I'd like to talk to a lawyer to make sure I'm proceeding correctly. Anyone suggest a RE lawyer in Sacramento for a simple consult?

Related - any tips on how to serve notice to the seller? I've got their name, but only the agent's address.

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  • Houston, TX · Member since 2015 · 512 posts · 338 votes
    10y

    I would send the notice USPS certified with return receipt to the address on file for the Seller's property with the Appraisal District.  You should also send something to the agent certified with return receipt as well as his sponsoring broker and let him know that you have sent this to the Seller as motivation for both parties (e.g. reimburse my earnest money by XX date or I will be pursuing this in small claims court in the amount of $XXX times 3 as mentioned in the contract Paragraph 1, Section 3A blah blah blah and you will be responsible for my attorneys fees as well) - have an attorney help you with the language to make sure it meets your needs since many states are different.  This happens a lot and expect any real estate attorney can help.

    Also keep in mind that the Seller is not able to sell their property to anyone else until they have released your Earnest Money.

    Good luck.

  • Real Estate Agent · Sacramento, CA · Member since 2015 · 338 posts · 135 votes
    10y

    Is the listing agent also the managing broker?  If not, talk to the listing agents broker about cancellation and release of deposit.

    Also, you stated you formally cancelled the contract.  Did the seller sign the cancellation?

    If the owner isn't living in the home you can get their address from your new agent as they should be able to pull tax records and get it.

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