BUYER ABLE TO DEMAND DEPOSIT BACK !
TO EVERYONE --
I will post the civil code numbers related to the "demand". Both title owner and manager gone for the holiday.
PLEASE EVERYONE ... this has been a very well kept secret civil code that has been around for YEARS !!
I unfortunately had to become aware of it myself a few years ago. Obviously, not all CALIFORNIA agents and brokers are aware. This only applies WHEN the check is made payable to the TITLE COMPANY AND the BUYER is aware of what to do. That is to personally go to the title company and DEMAND the deposit back.
Title companies will not volunteer this info. But the buyer I was working with was told about this procedure from a LEGAL AID ATTORNEY. I guess that was a sharp attorney.
ONE way to stop that would be have the deposit check MADE payable to the REAL ESTATE COMPANY and then endorsed over to the title company.
CALIFORNIA is not all bad ... in fact most of our regulations I feel are the best over other states ... and I do business in other states.
Cheryl Lopez[ Edited by JohnLocke on Date 07/04/2004 ]
another way is to state on your contract "earnest deposit is non-refundable" if the buyer signs it, then they are attesting to this
EVERYONE --
1) This relates strictly to a CALIFORNIA CIVIL CODE governed for TITLE COMPANIES in CALIFORNIA to follow.
As I have stated after the holiday the 2 different title companies told me that they will provide me with the civil code number and I will enter a brief section to that code.
2) The above poster stating to have buyer agree that the deposit is "non-refundable".
Most buyers will not sign and agree to that requirement on their purchase contract. So the seller will have to look long and hard for a buyer to agree to a non-refundable deposit !!
Also ... in most cases when the escrow needs to be cancelled the buyer is usually entitled to have the deposit return back to them (loan declined, repairs seller declined to do, property condition, disclosures, etc).
In Small Claims Court (my experience in California) have been Judges are very sympatic towards buyers and award the buyer return of their deposit.
[ Edited by cheryllopez on Date 07/05/2004 ][ Edited by cheryllopez on Date 07/06/2004 ]