Procedures for making an offer..

[denverd0n]

Originally Posted by boatsail

I'm in real estate and I can tell you for fact that for deposit to be released it needs to be signed off by both parties.

Okay, so Terra Nova was maybe a little harsh, but...

While this may be true, if you have a properly written contract it really doesn't matter. Here's a personal example from a couple of years ago:

Looking to buy a townhouse. Signed a contract that was contingent on inspection and review of the CC&Rs. There were a couple of things in the CC&Rs that were a surprise to me, and not acceptable. I told the broker that and said I wanted my deposit back.

The sellers broker balked. Wanted to know what the problem was. Struck me as being argumentative in the way she asked, and I refuse to get into that sort of pissing contest. So I sent a letter that said, "The contract to purchase is contingent on a review of the CC&Rs being acceptable to me, the buyer. I have reviewed the CC&Rs and do not find them acceptable. Therefore I am cancelling the purchase, effective immediately, and require my deposit to be returned to me as per the contract."

Broker called and, again, wanted to get into a discussion of it. I simply said that the purchase had been cancelled and that if my deposit was not returned within the time specified in the contract, I would be filing a lawsuit. The check was in the mail that afternoon.

Is it possible that they could have held up the return of my deposit? Sure. I suppose so. Then I would have sued and they would have lost. Guaranteed, 100%, they would have lost--and they knew it. Not only would they have had to return the deposit, plus interest, but they also would have had to pay for court costs, my time and inconvenience, and I would have gone after some punitive damages on top of that. Yeah, having a sister who is a lawyer makes that easier for me, but anyone could do the same.

So, only an idiot of a seller will refuse to return the deposit according to the conditions set forth in the contract. If the contract properly protects the buyer's deposit, then you really have nothing to worry about.

[Cheechako]

Originally Posted by boatsail

I'm in real estate and I can tell you for fact that for deposit to be released it needs to be signed off by both parties. 99.9% of people and agents think that it's only needed to be agreed how it will be release if the other side is in breach, but the 10% I saw mentioned earlier. ROFL. Good luck, knowing what I know about release of a deposit is a reason I would not put a 10% deposit. And furthermore, Most often I see an amount of around 1% on a home, so a 300k place is only 3k deposit (not fixed amount by any means, negotiable) so on a 100k boat you would be talking 10k. That seems high to me as a deposit/"hold this for me" fee. I'd be at a number willing to walk on or not to pissed off about if for some reason release was not spelled out the way I thought. Most people don't read the contracts enough imo.

Not true up here in WA. We sold a house in 2008. Buyers contracted and made a deposit. Long story short they evidently found another they wanted more. They had tied up our house for 2.5 months in the process though. Our broker asked if we should give their money back. In most normal circumstances I would have, but because they had tied it up so long and the economy had changed a lot in that time, I asked for it and got it quickly.

[DsquareD]

Originally Posted by Cheechako

Not true up here in WA. We sold a house in 2008. Buyers contracted and made a deposit. Long story short they evidently found another they wanted more. They had tied up our house for 2.5 months in the process though. Our broker asked if we should give their money back. In most normal circumstances I would have, but because they had tied it up so long and the economy had changed a lot in that time, I asked for it and got it quickly.

So what you're saying is, the buyers did not satisfy their obligation. It doesn't matter where you are, an obligation is an obligation.

The whole point of a deposit is to show good faith of the buyer AND to protect the seller from exactly what you experienced.

A contract is a contract regardless of the commodity being sold.

I would also like to know what the "norms" are for my next boat purchase. That is why I'm following this thread.

As a seller of real estate, I have refused to engage in offers that came with no deposit/earnest money. I needed to see at least a $500 check. Otherwise what's to stop this person from writing dozens of offers and keeping all the power on their side of the table?


Dennis

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