If a sale is cancelled who is liable for out-of-pocket expenses?

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If a sale is cancelled who is liable for out-of-pocket expenses?

We attempted to purchase a house from Fannie Mae with cash. However while only to have our offer accepted, and our was check cashed, the sale was then cancelled. We have suffered a loss. We had a contract and there was not a contingency for what occurred. Should they be liable for our loss?

Asked on March 22, 2011 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the following does not answer your question, please submit with additional detail; otherwise, it sounds as if the sale was cancelled subsequent to you having placed a deposit on the home, and furthermore, it sounds as the sale was cancelled NOT due to your actions (e.g. you did not withdraw from the sale), but do to either the actions of some other party (e.g. Fannie Mae) or some event beyond the parties' control. If that was the case, then you should get your money back; if either the other party cancels a contract or transaction, or the contract or transaction is rendered impossible to complete for some other reason, then a party making a deposit should get the deposit back. If however you were the reason for the cancellation--you withdrew; or couldn't qualify for financing; etc.--then you would not get it back.


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