Real Estate Law:
Deposit conflicts are one of the most commons issues that arise on a failed real estate closing.
It can become a hostile debate because each side believes they deserve the money. There are certain things you can do, however, to help handle a dispute successfully. Learn the steps to help resolve the problem quickly and peacefully.
Show You Have a Legal Reason for Keeping the Security Deposit
The first step is to show the legal reason for keeping the security deposit. This starts with the contract for sale and purchase. The basis for who gets the deposit will be determined by this contract.
The Two Areas Where Deposit Disputes Arise
The deposit dispute may arise from any provision from the contract, but at David Chico Law Group we see two areas that cause the most litigation: (a) the financing contingency and (b) the property inspection contingency. This is so because financing problems and inspections problems are the leadings reasons for cancelled closings. (This is the primary reason why as a buyer you have go give yourself enough time to complete these contingencies).
Evidence to Back Up Your Claim
Cases rise and fall on the documentary evidence. You have to do things in a way that documentary evidence is created. This is done by emails, texts faxes and letters. If for example, you have 15 days to schedule an inspection and the seller says the best they can do is 16 days this needs to be addressed in writing and not just telephonically. You can have telephonic conversations and then follow it up with a memorandum in writing. Remember, the written evidence is king.
THE PROBLEM WITH NOT RESOLVING THE DISPUTE: THE TITLE COMPANY FILES ITS OWN LAWSUIT
The biggest problem with not resolving the dispute is that the title company often will file its own lawsuit alleging there are competing claims from the buyer and seller. Because the attorney for the title company is allowed to get paid from the deposit if this type of suit is filed you will find that the available deposit money starts shrinking. This is a major consideration to settle these cases early in the process.
For your deposit dispute needs call David Chico Law Group today.