Can I sue a buyer who signed a purchase agreement. ?...Buyer paid Earnest Money, and he refuses to perform on Agreement, and now wants his Earnest Money Back.
@Alex Hamilton whats your contract say? Just move on and find a new buyer, now maybe you can keep his Ernst money, but never wanted to be THAT guy, think what it may due to your business and scaring off future deals. JUST MHO
You can file suit, but you will be wasting your time. Think about it for half a second: do you really expect to obtain a court order compelling someone to buy a property they don't wish to buy? Typically, earnest money is considered liquidated damages in these situations. Move on. Find a new buyer.
Alternatively, suits for specific performance compelling someone to SELL their property can be successful.
The theory is that there're many buyers for a given property, but there may be only one "dream home" for a buyer. Hence you won't get a judge to order a purchase, but you may get a judge to order a sale.
Agreed, usually the EM is the contractual remedy for Buyer default. I've never seen specific performance as a remedy against a buyer, and even against the seller it's iffy. Collecting the EM again depends on your contract, and state reg.s. Here a title co. can't release a disputed EM without a court order, and there's a different mechanism if the EM is held by a RE broker, but we don't know LA reg.s.
Thanks, everyone, was thinking the same plus, the Attorney fee on any such suit would be a waste. I have already waste to much time and Money with the buyer. Plus, possible Tenants with his inspections, and tire kicking for 6 months. But, we are keeping the Earnest Money for sure.
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