What are the most likely consequences to a buyer that defaults on a contract?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What are the most likely consequences to a buyer that defaults on a contract?

We purchased home gave 10% down payment then for personal, medical and financial reasons decided not to close. We spoke to developer and they allowed us to list with them for resale with out closing first but they took house off market 4 days ago for

Asked on December 26, 2018 under Real Estate Law, Connecticut


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

At a minimum, you will lose any deposits or earnest money if you default--when a buyer defaults, they do not get their deposit(s) back. If your default causes the seller to incur provable losses or costs which exceed the deposit (e.g. from "carrying costs," like taxes, insurance, interest on loans, etc. during any prolonged period they end up holding onto the home before finding someone else to buy it), they could potentially sue you for the excess or surplus, unless the terms of the contract limit them to only keeping your deposit.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption