 |
Buyer Didn't Close |
| |
 |
What are the sellers rights on the escrow deposit if the buyer do not close the sale? |
| |
| |
 |
Answer: As so often, it all depends.First, we'd have to know whether the buyer backed out for no good reason or had some contract provision that allowed the default. Then we'd have to look at the sales contract to see what it said about that deposit. Sometimes the parties have agreed it would serve as "liquidated damages" which means the seller could not claim any more than that in case of failure to close.In any case, the person holding the deposit shouldn't give it to the seller or return it to the buyer until the two parties are in agreement on the matter and have signed releases officially voiding the contract. If the parties couldn't agree, a broker who is holding the deposit in escrow could hand it over to the custody of a court, to be held until the matter is settled, by either negotiation or lawsuit.Rarely, depending on the circumstances, an agent might be entitled to a commission even if the sale never closed, and might also have a claim on the money. |
| |
|
Edith
Originally published on April 30, 2008 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
