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Canceling a Purchase Contract

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  • 08-21-2008, 11:37 PM
    roc
    Canceling a Purchase Contract
    My question involves real estate located in the State of CA:

    I submitted an all cash offer on a property in CA on 7/30/08, with an escrow deposit of $2k. I never gave a check to my agent, rather I emailed him a scanned copy of the deposit check. I still have the actual check. I specified on the offer a contingency of 10 days for inspections. After counteroffers and so on, the contract was fully executed on 8/11/08 with closing scheduled for 8/22/08, and a hand written addendum that deposit is non refundable after 5 days. I did not initial or sign next to the hand written addendum. Although I did initial on the bottom of the page where this handwritten portion was on. I called my agent on 8/17/08 to cancel the contract, and he had me sign a cancellation the following day. I get a response today that the bank (this is an REO) will not sign my cancellation, and wants me to release the deposit to them.

    Do I have a valid claim to keep my deposit?
    How would the bank collect if I still have the physical check and funds were never deposited by escrow?
    Since I did not acknowledge the handwritten portion with a signature, is that portion not valid?
    How likely is it for the bank to sue to collect the deposit? I no longer have the money nor the check, so it will be like squeezing blood out of a turnip.

    Thanks in advance.
  • 08-23-2008, 09:20 AM
    Mr. Knowitall
    Re: Canceling Purchase Contract
    So basically you're wondering if you can avoid being held to the undisputed terms of your written contract because you did not initial a particular hand-written clause? The initials are to demonstrate that the additional language was not added after the contract was signed. As you're not disputing that the language was there, and approved by you, when you signed that's not an impediment to its enforcement.
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