November 29th 2007 Real Estate News for Tacoma, Puyallup and Pierce County Washington.

TACOMA - PUYALLUP & PIERCE COUNTY, WA

REAL ESTATE NEWSLETTER / BLOG
By: Don Leske II / Agent & Associate Broker

[NewsLetter]

11-29-07 Issue
"In my case the building inspector found an electrical problem and rated it as defective. I decided to cancel ....."

Editor: this is a Q and A from Trulia.com

Buyers Question: "In my case the building inspector found an electrical problem and rated it as defective. I decided to cancel the purchase because of this. The seller refuses to sign the cancellation and escrow will not release the funds. My question is Should escrow be able to hold the money even though the seller refuses to sign the cancellation agreement or should they release it? I have requested that escrow returns the money because the seller does not sign." Roberta from Hawaii

My Answer:

Hello Roberta,
TIME IS OF THE ESSENCE.

You are the buyer. I will assume that you have a Buyers Agent. I will also assume, correct me if I am wrong, that you had as part of your Purchase and Sale Contract... an Inspection Addendum? Please review your Addendum to see what date it expires!!! Do this right away and let no more time pass by. Go over it with your Agent, I will also assume a Rescission has been faxed in. If the time has not expired, it would appear that you may have a good case, but you may end up having to consult with an Attorney as Durenda said in the end. Here are some points to consider:
1. Real Estate Agents cannot Legally advise you on contract Law nor to pursue a Legal claim.
2. Your Agent...., I HOPE that he/she faxed a proper "Reply to Inspection Report" and "Rescission Addendum" to the sellers Agent prior to the expiration of the Inspection Addendum that you must have had.
3. Escrow companies are ALWAYS trying to protect both the buyer and the seller. They are required to be a netural 3rd party and as such they want to see both parties "agree mutually" to any release of funds. You do have a right as a Buyer in most States to choose your own Escrow company, did you? Or, was the Escrow company picked out by the seller or sellers Agent? That little tid-bit of info can help. BUT..., here is the catch and I can only tell it to you by telling you my story.

I have had to go to the Escrow companies with our Purchase and Sale Agreement and go over it with a fine tooth comb to show them how our Inspection Agreement is worded. I Washington State we are a Buyers Agency State and buyers have a LOT of rights, our Inspection Agreement spells out that if the buyer notifies the seller within the proper time limits (normally 10 days) that they are unhappy with the sale due to what was found at Inspection, that the buyer retains Earnest Money. Then the Inspection Reply Form is also required and it is basically a "Notice" to return funds to buyer and does not even have a place for the seller to sign or agree..... seller in this case would NOT have to agree, as they have already agreed on the initial Purchase and Sale Agreement to return funds if within proper time lines. Three times Escrow has ended up agreeing with me and returned my clients funds. If needed call your Agents Broker to ask for a review of all paperwork. Brokers are there to help everyone and they stand to loose not only a good client [You] but also a lot of face if you were not properly serviced. Word spreads faster with bad news than it does with good news..., most happy people just move on with their lives without even a thanks to those who gave good service, however unhappy clients will "get even" or simply tell everyone they know about their bad expierence. Brokers REALLY want you to be happy. :)

I hope that this in some way helps. This is NOT intended to be Legal Advice in any way. We caution all buyers and sellers to consult a Lawyer when disputes arise right away if your Agent or Broker cannot help or resolve the issue.

Kind regards,
-Don / Associate Broker

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