Question

  03/23/12, 8:08 pm
There is 10k held by escrow. Earnest money. I'm the seller and the buyer backed out 3 day prior to the close of escrow. Contingencies were signed off. The buyer wont sign the form for escrow that says they can release the money. Who do I sue in small claims court? The buyer or the escrow co.?
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United States   |   California  |  Real Estate and Real Property
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Answer

Darrell York Says:

Apr 11,2012 4:23 PM

The buyer. The escrow is merely holding the money in their trust account and they cannot release it unless the buyer signs off or they have a court order. Sue in small claims and obtain a judgment. You could also initiate legal action in superior court, limited jurisdiction since the standard real estate purchase agreements provide for attorneys fees to the prevailing party. This would give you more leverage than a small claims action.


Darrell York
Law Offices of Darrell J. York
27240 Turnberry Lane, Suite 200,Valencia, CA 91355
866-908-2121
http://www.djylaw.com

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