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Buyer Went Underground |
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Edith, I am a relatively new realtor. My clients double home (he was owner occupant) had a purchase contract accepted Sept 21, 07 with closing set for Nov 10, 07. The buyer had a mortgage commitment early Nov. My client moved out Nov 8th anticipating closing. The buyer lost his job and mortgage, went underground for two weeks and did not close. We served time is of the essence.
He securred another job and mortgage commitment so we ammended the contract for closing Jan 3, 08. He took a leave of absence without permission, lost his job and mortgage and didn't close Jan 3rd.
We served a cancellation of contract which stated he breached contract twice and that the $500 deposit was to be retained by my client for damages (he is still paying mortgage and rent/storage since he moved out). The buyer has since sub-let his appartment and again is no where to be found! He has not signed off on the contract cancellation and the attorneys have no way of finding him to serve a small claims court proceeding.
Are there any options of releasing the $500 deposit to my client without the buyer signing off?This is still being held by my broker in escrow.
Thank you for your time,
Mike Henning
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I can't tell your client any more than his lawyers can. The broker is not allowed to release the money without written consent of the other party, or a court order. And it hardly seems useful to incur the legal costs of suing for that amount. Seems too bad your client can't go to small claims using that apartment address, but it sounds as if getting a judgment wouldn't be much practical use anyhow.
It's too bad this had to happen to you at the start of your career. Perhaps the only lessons to be learned are that you might want to advise your sellers to ask for a credit report before they get the house tied up with a buyer. Or to hold out for a larger deposit.
I'm afraid all I can offer you is sympathy. |
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Edith
Originally published on February 28, 2008 |
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