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Updated over 9 years ago on . Most recent reply

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Joy Somroup
  • Elmhurst, NY
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seller back out after received earnest money and signed agreement

Joy Somroup
  • Elmhurst, NY
Posted

Hi, 

I need someone advice. My husband and I decided to purchase a restaurant that is currently no longer operated. We contacted the owner and she decided to sell it to us. We offered the earnest money to seller at $5,000 to make sure that she will not make any offer to other buyer. After signing the earnest money and get notarized, the seller contacted the landlord. After meeting with the landlord, we found that the seller already signed leased termination to the landlord due to loss business because she owed a few month of rents to the landlord. Landlord is now asking us to sign a closing paper with the seller, otherwise he will not let us take over the business. My problem is now I cannot contact the seller, she did not answer our phone call as we tried to reach her several times. I'm very frustrated because I'm afraid that I will not be able to take over the business and end up losing my earnest money to the seller who is now nearly disappear. What can I do? What can I do with earnest money agreement that signed by seller. Please give me some advice.

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