What can happen if the buyer defaults on home purchase?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What can happen if the buyer defaults on home purchase?
Buyer and seller agreed on price and signed a purchase and sales agreement – waiving the inspection period.
After some consideration, I am no longer comfortable in purchasing the home. The sellers are not interested in allowing the offer to be withdrawn, not even with additional money offered on top of the deposit.
If I default and do not purchase this property, what is the most they can do. They obviously keep the deposit. Can they sue? For the purchase price? For time lost?
Asked on October 11, 2018 under Real Estate Law, Maine
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
1) Yes, they can absolutely keep the deposit.
2) If the contract of sale specifically states that in the event of your default, all they could get is the deposit, that's all they can get; in this case, they would have contracted away the ability to seek anything more.
3) If they are not contractually limited to the deposit, IF they can show they incurred greater losses (e.g. larger carring costs from having to hold onto the property for longer due to your default, which costs exceed the deposit), they could potentially sue you for the amount by which their loss exceeds the deposit.
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.