It is better to cut bait… and fish on - Posted by JT-IN
Posted by JT-IN on July 21, 2005 at 13:02:43:
In most instnaces, you will need to pursue the potential purchaser legally if they do not willingly agree to forfeit the em deposit… In fact, by not pursuing them legally, and not refunding their deposit, this could potentially cloud the title for any new deal… You can’t have it both ways… because any litigation or possibility of same, that may effect the subject property, should be disclosed to the new buyer and any title company involved. Once they get wind of pending or potential litigation, then you lose the net buyer and title commitment too…
Unless you want to slug it out with these folks, which will cost time and money, or unless they fold willingly, the cards are stacked in their favor… Most of the court cases that I have seen on this subject also favor the buyer, unless they had a loan commited and basically walked away from the closing table. Any other fuzzy details as to the loan commitment or closing, and the facts fall in their favor.
Usually, when it goes as far as to a court case, the Judge rarely wants to be a Judge, and sides with the fact that the owner still owns the property, and can sell to another willing purchaser… so where is the harm or damage…? In every case that I have personally followed to this point, the buyer has gotten the funds returned to them, unless it was a last minute cold feet issue, and the closing was set and ready to go. It sounds like you weren’t at that point.
Just the way that I view things…