If a contract for sale of residential property does not close due to buyer not getting financing by certain date to close, can seller keep escrow deposit?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a contract for sale of residential property does not close due to buyer not getting financing by certain date to close, can seller keep escrow deposit?
I had a signed contract 01/29 to sell my property and close by 03/11. The buyer’s realtor asked for 2 extensions of time to
Asked on April 1, 2019 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Legally, if the buyer does not or cannot close, you are entitled to the deposit as "damages" for the buyer's breach of contract; typically, the buyer only gets the deposit/escrow back when the seller does not or cannot go through with the sale.
Practically, if they will not voluntarily agree to cancel the contract while letting you retain the deposit, you'd have to bring a legal action (lawsuit) for a court order that the contract be cancelled and the escrow released to you: only a court can order what a person does not do voluntarily. You have to decide if the cost and time of a lawsuit is worth the $1,000.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.