Buyer's deposit claimed by seller??

Question

Seller does not want to continue with the transaction because it's taking too long however seller syas that she should keep the deposit because of the economic loss caused by the botchered transaction. After a couple if calls we agreed that she keeps 1/3 of the deposit. That is not all, I know that her Agent will share with her. How can he do that? Is it legal? Does escrow cuts two different checks?

J Scott · Answer

What does you contract say about when the seller can keep the deposit?  That's all that matters.

As for what happens between the seller and their agent, that has nothing to do with you...why do you care?

Michael Quarles · Answer

this is why there's a small claims court.

Most agreements are active which require parties require performance although the agreement may call for an action.

Remember you're only wrong when you and a judge believe you are.

Wayne Brooks · Answer

Elvis,
If you actually want an accurate opinion, supply some details.

Joel Owens · Answer

"by the botchered transaction."

Who botched it??Did you??

It says this is in the wholesaling forum so I assume you are a wholesaler.

Attorneys can and will sue for opportunity loss on behalf of the seller.

Does your contract say that the only remedy in full is forfeiture of the buyers earnest money as liquidated damages??

If that's the case then per the contract they can only come after the earnest money.Of course if you had gross negligence,fraud,criminal activity etc. they can still come after you.

If you tied up a property and then didn't perform the seller is being impacted in a negative way.Again with a wholesaler this is why non-refundable earnest money would be required if it was my client.

If not we simply wait for another buyer or can kick them out of the contract and accept another offer from another buyer at any time.That way you have the wholesaler working on the long shot at the same time as pursuing other buyers.

Ned Carey · Answer

Keep in mind that delays in settlement are often the sellers responsibility. Most contracts say that the seller will provide Marketable title free and clear of all encumbrances.

If the delay is because the title work is not done, then usually that would mean the seller has not met his or her obligation to provide clear title. Hence the seller is in default not the buyer.

Even though you have agreed to forfeit some of the earnest money deposit, if it is not in writing, you may be able to renegotiate. If I felt that the delay is because of the title issues I wouldn't hesitate to be tough with the seller. I would be talking to the attorney at the title company.

Wayne Brooks · Answer

Either the seller is contractually entitled to keep the deposit, or she is not.  Taking a long time doesn't qualify.  You'd have to be more detailed.
And yes, most listing agreements will call for the agent to colect a percentage of any forfeited deposit-because a deposit is only forfeited when a buyer was procured/under contract, and then defaulted.

Buyer's deposit claimed by seller??

Most Popular Reply