Do I have a claim as a seller to buyers earnest deposit?
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Do I have a claim as a seller to buyers earnest deposit?
We signed a legal contract through a realtor with a ‘cash’ buyer on Saturday
4/29/2017. Buyer showed a 2000.00 deposit for good faith. I am being told now by
my realtor that the buyer has walked away from the purchase because of his
funding to purchase was to be wire transferred by another party and that party
has changed their mind. The only contingency in the agreement was for
satisfactory inspections which buyer did not arrange for any before backing out.
I have the purchase agreement available to review by download or fax if needed.
Thank you.
Asked on May 3, 2017 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Once the buyer actually breaches the contract--not merely that you are told that they will, but they do; i.e. the fail to do something by the date in the agreement (e.g. fail to provide another payment, if there is another one which they owe, by when it is due; fail to close; etc.)--then you can keep their deposit; when the buyer breaches, the seller gets their deposit. But you need there to be a breach, not just someone warning you that there will be or may be one.
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