Escrow Cancellation (Failure to Perform)

Long story short, my partner did not full fill his end of the deal which resulted in the seller cancelling escrow for nonperformance. I found out my partner went behind my back and reopended escrow with the seller 2 days after the cancellation. I did all the negotiating in the deal to include getting the seller to carry interest only for one year. Only the seller has signed the cancellation paper work and my partner has gone ahead and opended up escrow with another escrow office. Our original escrow agent said if the escrow company new there was an outstanding escrow they would not move forward without having the original escrow closed. Our only contract was the our signed agreement to buy the property in escrow. What can I do, file, or record to prevent the sale of the property. Do I have I a suit against my partner?



Hey Jeff,

Your contract in escrow is a legally binding agreement with the same effect as an option. Record a Memorandum of Option (you don’t need another signature), along with a copy of your contract with the County Recorder. If you beat them to the punch, they won’t be able to close escrow. Good luck.

Da Wiz