EMD deposited in escrow- after I called/text “I’m cancelling”

[Paul Vaughan]

Hello BP people, I’m juststarting out, Found a house for rehab (Carson Ca). In short, made an offer based on comps yet to be seen physically. I did hand over the EMD with the understanding that I’m going to view the comps and let you (the agt) know if its a go. The agent was doing this as a wholesale deal and indicated we’d need to move “fast” if I want it. Low & behold when I called/text 10 mins later to cancel he indicated I was too late! Much to my surgrin. I reinterated “I’m cancelling!” Later i noticed the wire transfer @1:42pm later the same day. Hours after my call/text cancelling. The Q is did I not formally cancel the deal based upon my call & verified time stamp on the cancellation text? They (New Western Accusitions) is trying to keep “EMD”. My thinking is the agent acted in a non-professional if not deceitful. Escrow should not have been opened, therefoe the sales contract is null and void or unenforceable! correct? Any input would be appreciated, H. Paul Vaughan Lakewood, CA

[Mike Cumbie]

@Paul Vaughan,

It's not a matter of finding a lawyer that "understands contract law". It's a matter of finding a lawyer who is willing to "be hired to fight your side of the issue". 

I have no idea what your contract says and I have no idea what local customs and laws are. I do know that if you signed a contract that the "EMD was non refundable" and they had a process where the ball started rolling (IE a digital imprint of the check is sent to the secretary, who in turn emails it to billing, who follows process 42.....) Then a very real counter argument could be "Nope, nobody could have purchased it because once the email is sent then the property is automatically removed from the system so no other checks can be processed".

You can insist you are right and everyone else is wrong, their experience or assistance is not what you want to hear. So instead of using that information to help you get your money back, you are fighting people on the site. Well none of us have your money. So sure, you are right. The money is as good as in your bank now.

If someone on this site was asking questions, I would recommend they see if they have outs in their contract. If so I would use one of those as opposed to arguing up the EMD tree. But to answer your initial question, In my area you would need to use a form to cancel, verbal and text messages are not "the way to cancel a contract". Ours actually has lawyers acknowledging they can use email instead of fax. I am pretty sure not one of them here would accept a text message as a signature on a cancellation document.