Agent

When selling home, ask buyer for at least 5% deposit

Couple faces financial ruin when buyer cancels deal
Published on Apr 28, 2008

DEAR BENNY: We recently sold our home (in Maryland), and had a ratified contract. The homeowners association (HOA) documents were delivered and received by the buyer, and the inspection was completed. All the "i's" were dotted and "t's" crossed. One week before closing, the buyer backed out, deciding he simply does not want our home. At this point, we have packed, scheduled movers and purchased a new home. The deposit we received is only $5,000; in a different market we could have probably requested more. The funds lost by the buyer are minimal in the grand scheme. In our opinion, this is a breach of contract and frankly, it has caused severe financial implications for us. The proceeds from the sale were going to be used towards the down payment of our new home. Without these funds, our new monthly mortgage is quite high and we still have our current mortgage to pay. Do we have any recourse? Can we sue for breach of contract and hold the buyer liable...

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