About 1 in 5 West Hollywood condo escrows fell apart over the past year, most within the first two weeks, usually over the inspection. If the buyer’s loan stalls later, your signed contract decides your options: check the loan contingency deadline, whether it was removed in writing, and what the lender actually issued.
What happens if the buyer’s financing falls through after you accept the offer?
What you can do depends on your signed purchase agreement, not on a general California rule. If the loan contingency is still open, the buyer may have the right to cancel or ask for more time. If it was removed in writing, your position is different, and any next step has to follow the contract’s notice terms exactly. Deals fall apart more often than sellers expect: about 1 in 5 West Hollywood condo escrows that resolved over the past year never closed.
Key Takeaways
Of 271 West Hollywood condo escrows opened between October 22, 2025 and October 21, 2026 that have since closed or ended, 56 fell apart, about 1 in 5.
Most failures came early: the median deal fell apart 9 days into escrow, and 39 of the 56 failed within the first 14 days. Deals that fall apart that early usually fall apart over the inspection. Financing problems tend to surface later.
Of the 38 deals that fell apart by late July, 15 units were back in escrow and 11 had closed by October 21, 2026.
9 of 13 units that resold after a failed escrow closed below the list price they had when the first deal fell through. The median gap was 2%.
The C.A.R. Residential Purchase Agreement sets a default loan contingency of 21 days after acceptance unless you agreed to a different period, so find your deadline first.
Source: TheMLS, MLS Area 10, condos only, listing status histories for escrows opened October 22, 2025 to October 21, 2026. Records entered after a sale closed are excluded. The MLS does not record why a deal fell apart, so these figures include financing, inspection, and every other reason.
How often do West Hollywood condo escrows fall apart?
More often than most sellers plan for. I pulled the status history of every West Hollywood condo that went into escrow over the past 12 months. Of the 271 escrows that have since either closed or ended, 215 closed and 56 fell apart, which is about 1 in 5. Four units fell out of escrow twice.
The failures cluster early. The median failed deal ended 9 days after the seller accepted the offer, and 39 of the 56 ended within the first 14 days. Deals that fall apart in the first week or two usually fall apart over the inspection, not the loan. Financing problems tend to show up later, as the loan and appraisal deadlines approach, and 17 of the 56 failures came after the first two weeks. 47 of the 56 fell apart while the listing was still marked Active Under Contract, before it moved to Pending. Escrows that did close took a median of 27 days from contract to close.
What happens to the unit after a deal falls through?
It goes back on the market with a new clock. Of the 38 deals that fell apart on or before July 23, 2026, 15 units were back in escrow and 11 had closed by October 21. For the units that found a new buyer, the median time from the failed deal to the next contract was about three weeks.
The price usually gives a little. Of 13 units that resold after a failed escrow, 9 closed below the list price they had when the first deal fell through, 3 closed at that price, and 1 closed above it. The median gap was 2%.
Two sales show the range. At 967 Hammond St, unit #5 went under contract in August while listed at $1,495,000, came back on the market a week later, was back under contract within days, and closed in September at $1,490,000. At 818 N Doheny Dr, unit #606 went under contract in July while listed at $899,000, came back on the market in August, went under contract again in September while listed at $849,000, and closed at $737,500. The MLS shows the list price at each contract, not the price the buyer and seller agreed to.
Source: TheMLS, MLS Area 10, condos only.
What should you check first after you accept the offer and the loan stalls?
Check three things in order: the loan contingency deadline, whether that contingency was removed in writing, and what the lender has actually issued. The moment you accept the offer, the contract’s clock starts, and that clock tells you which situation you are in.
The panic usually comes from treating every setback the same. A slow lender and a written denial are not the same event. Before you call anyone, pull out the signed agreement and every addendum.
Is the loan contingency still open?
A loan contingency makes the buyer’s obligation to complete the purchase depend on obtaining the financing described in the agreement, and the buyer is generally expected to act diligently within the stated time.
Under the C.A.R. Residential Purchase Agreement, the default loan contingency is 21 days after acceptance, and within it the buyer either removes the contingency in writing or cancels under the contract’s procedures. Your negotiated period may be shorter or longer, so count from your actual acceptance date and check the version you signed.
Contingency removals should be made in writing, usually on a contingency removal form. If you can’t find one in your file, don’t assume the contingency is gone.
Is it a delay, a conditional approval, an appraisal problem, or a denial?
Name the event precisely, because the contract treats them differently. Here is how I sort them with sellers:
Lender delay, contingency still open. Check the contingency deadline and the buyer’s duty to act diligently. Ask for a written status update and consider a written extension.
Conditional approval. Check whether the lender’s conditions are items the buyer can satisfy in time, and track each condition and its due date in writing.
Appraisal problem. Check whether a separate appraisal contingency exists and is still active. Review that clause on its own, not as part of the loan contingency.
Written denial before removal. Check the buyer’s cancellation language and procedures, and talk with me and your escrow officer about the paperwork before anyone signs.
Contingency removed, buyer can’t close. Check the written removal, notice provisions, and cancellation terms, and get legal guidance before serving any notice.
The appraisal item matters more than most sellers expect. Removing the loan contingency does not necessarily remove the appraisal contingency. A buyer can be done with one and still have the other.
If the buyer’s side says financing is secured, ask what the lender has actually issued. A hopeful email from a loan officer is not the same as the approval your contract calls for. I cover the warning signs earlier in the process in my post on spotting buyer financing red flags before you accept a West Hollywood condo offer.
Can the buyer get more time, and can you cancel?
The buyer can ask for more time, and you can agree, but only if it is documented in writing. Whether you can cancel depends on the contingency status and the contract’s cancellation language, not on how frustrated you are.
When should you discuss a written extension?
Discuss one when the loan contingency is still open and the lender’s status points to a delay you can verify. An extension is a change to the schedule both sides signed. It belongs in a written amendment signed by both sides, not in a phone call with escrow.
I look for three things before I recommend a seller say yes:
A specific new date, not an open-ended “a few more days.”
Written confirmation of what the lender still needs and who is responsible for it.
Clarity on which contingencies the extension touches, so the appraisal contingency isn’t affected by accident.
Sometimes a short extension is the fastest path to closing. Sometimes it only delays a denial. Financing trouble usually shows up after the inspection period, when you have already turned away other buyers, so that judgment is worth a quick call.
What does a Notice to Buyer to Perform do?
It tells the buyer to do what the contract requires within a set time or face the next consequence. Under the C.A.R. purchase agreement, a seller generally can’t cancel until at least 2 Days after delivering a Notice to Buyer to Perform. Follow your agreement’s wording, delivery method, and timing precisely.
Before serving one, confirm the loan contingency has actually expired without removal. Serving a notice while the buyer still has a live right to cancel can create problems rather than solve them.
Can you keep the buyer’s deposit?
Not automatically. Whether you are entitled to the deposit depends on the contract, including any liquidated damages clause, and on applicable law. Cancelling the contract also does not move the money: escrow generally releases a deposit only on signed instructions from both buyer and seller, or a court or arbitration decision (Civ. Code 1057.3).
When should you bring in legal guidance?
Bring in a real estate attorney when the situation turns into a dispute, and keep working with me and your escrow officer on everything that is still routine. A normal closing doesn’t need an attorney. A contested deposit may.
The loan contingency was removed and the buyer now says they can’t close.
The buyer’s deposit is disputed.
You have served a Notice to Buyer to Perform and the other side is pushing back.
You and the buyer disagree about whether they acted diligently.
Either side is considering cancellation or a claim for damages.
How do you lower the odds your escrow falls apart?
Most of the risk is decided before you accept the offer. Read the buyer’s loan approval letter, find out who the lender is, confirm the contingency periods you are agreeing to, and know which date you will check first. If you are comparing offers, my post on lower cash offers versus higher financed offers walks through the appraisal side, and three red flags in financed offers covers what to read in the offer itself.
We can’t control a buyer’s lender, but we can respond to what they send us. The strongest response is calm, documented, and based on the contract in front of you.
FAQ
How often do condo escrows fall through in West Hollywood?
Of 271 West Hollywood condo escrows opened over the past year that have since closed or ended, 56 fell apart, about 1 in 5. The median failed deal ended 9 days into escrow, and early failures are usually about the inspection rather than the loan.
Can a seller cancel if the buyer’s loan is delayed?
Not automatically. A delay alone doesn’t necessarily give you a right to cancel, and the answer sits in your contract’s deadlines and cancellation language. If the buyer has missed a required step, a Notice to Buyer to Perform may be an option, with the contract’s notice terms controlling.
How long is the financing contingency in a California purchase contract?
The C.A.R. Residential Purchase Agreement defaults to 21 days after acceptance unless the parties agree to a different period. Your own deadline may be shorter or longer, so confirm it against the signed agreement and any addenda.
Can the seller keep the buyer’s deposit if financing falls through?
Possibly, but not automatically. It depends on whether the loan contingency was still open, the contract’s liquidated damages terms, and applicable law. Escrow generally needs signed instructions from both sides, or a court or arbitration decision, before releasing the deposit.
What is the difference between a loan contingency and an appraisal contingency?
The loan contingency covers the buyer’s ability to obtain the financing in the contract, while the appraisal contingency covers the property’s appraised value. They are separate, and removing the loan contingency does not necessarily remove the appraisal contingency.
Bottom line for sellers
About 1 in 5 West Hollywood condo escrows fell apart over the past year, most of them in the first two to three weeks. When financing wobbles after you accept the offer, read your contract, identify exactly what happened, and put every agreement in writing. If you’re in this spot now, or want a stronger offer review built into your sale from the start, I’m happy to talk it through. Book a private consultation. No pressure, just clarity.
About Damian DiCesare
West Hollywood condos are Damian DiCesare’s specialty. Past clients call him back years later to sell the same unit. He has 36 years in real estate across Pennsylvania and California. Realtor®, Douglas Elliman Real Estate, DRE 01267505.
Douglas Elliman · 310.291.3636
Equal Housing Opportunity. Damian DiCesare, California Salesperson, DRE 01267505, regulated by the STATE OF CALIFORNIA DEPARTMENT OF REAL ESTATE. Douglas Elliman will never ask for any payment to reserve, hold, or view a property. This article is general information, not legal, tax, or financial advice. Confirm your own situation with your escrow officer, attorney, tax advisor, or lender.