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Can a Pasadena home escrow be cancelled by seller?
An interesting question was just posed on Trulia. A home buyer was told by her real estate agent that the realtor representing the home seller was going to cancel escrow since loan and appraisal contingencies were not released. The question was – can the seller cancel the escrow?
When you make an offer to buy a Pasadena home or any California property, your realtor will discuss with you the three main contingencies of the home purchase. These contingencies are:
These contingencies are in place to protect the home buyer’s earnest money deposit. In essence, it’s a free look at the property for the buyer without any penalties.
For a home seller, this contingency period or a “free look” is a period of uncertainty. The deal is not sealed unless and until the home buyer signs off and releases all contingencies.
A good real estate agent representing the seller will ensure that all contingencies are released within the contractual time frames allowed and agreed to. Usually, the buyer will have anywhere between 7 to 17 days to complete their inspections, get approved for the loan and get the appraisal completed.
If home purchase contingencies are not released within the agreed upon time frames, a Notice to Perform is sent to the buyer by the seller and if the buyer still does not sign off and releases the contingencies than a home seller is totally in their right to cancel the escrow and move on with the marketing of their Pasadena home.
Posted by: Irina Netchaev
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