Buyer backed out
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Buyer backed out (by John [VA]) Jun 24, 2022 3:52 PM
       Buyer backed out (by Tonia [RI]) Jun 24, 2022 3:59 PM
       Buyer backed out (by John [VA]) Jun 24, 2022 4:42 PM
       Buyer backed out (by Mike45 [NV]) Jun 24, 2022 4:56 PM
       Buyer backed out (by #22 [MO]) Jun 24, 2022 5:02 PM
       Buyer backed out (by Robert J [CA]) Jun 24, 2022 5:05 PM
       Buyer backed out (by Lana [IN]) Jun 24, 2022 5:11 PM
       Buyer backed out (by MikeA [TX]) Jun 24, 2022 5:43 PM
       Buyer backed out (by Ken [NY]) Jun 24, 2022 6:21 PM
       Buyer backed out (by Robin [WI]) Jun 25, 2022 7:57 PM
       Buyer backed out (by John [VA]) Jun 25, 2022 10:53 PM
       Buyer backed out (by FloridaNative [FL]) Jun 26, 2022 10:09 AM
       Buyer backed out (by John [VA]) Jun 26, 2022 12:22 PM
       Buyer backed out (by Ray-N-Pa [PA]) Jun 27, 2022 7:13 AM
       Buyer backed out (by Nicole [PA]) Jun 27, 2022 1:02 PM
       Buyer backed out (by Ken [NY]) Jun 28, 2022 7:01 AM

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Buyer backed out (by John [VA]) Posted on: Jun 24, 2022 3:52 PM
Message:

Hello, had a buyer postpone closing 2 times and cost me about $30k in lost revenue from not having the funds to invest in my other businesses.

1st time excuse was her $1M auto accident settlement had to have attorney get papers signed. Second time she gave no communication and 2 weeks later said she still was going to buy it, then next day said she wasn't.

The settlement firm is now saying they aren't goign to release the $3k deposit to me because the buyer is not agreeing to it even though the contract specifically states it. They said I have to go to court and fight for it. Never had that happen like that before. Is that typical? --100.4.xx.xxx




Buyer backed out (by Tonia [RI]) Posted on: Jun 24, 2022 3:59 PM
Message:

I had a buyer back out on my condo recently. My attorney has advised me not to sign the release form. She suspects the buyer made multiple offers and then got stuck when they were all accepted. Additionally, she stated that time frame had surpassed per the clause. Maybe speak with your attorney about this, sounds like you have a potential law suit on your hands. Sorry to hear about this. Buyers are getting ridiculous in this sellers market. --71.117.xxx.xx




Buyer backed out (by John [VA]) Posted on: Jun 24, 2022 4:42 PM
Message:

Thank you for the information. Did you get the deposit? --100.4.xx.xxx




Buyer backed out (by Mike45 [NV]) Posted on: Jun 24, 2022 4:56 PM
Message:

Very common for the buyer who breaches to refuse to consent to the Earnest Money being paid by Escrow to the Seller. Because Escrow won't release funds without the Buyer's consent. This makes a bad joke out of Earnest Money Deposits.

--76.4.xxx.xxx




Buyer backed out (by #22 [MO]) Posted on: Jun 24, 2022 5:02 PM
Message:

File suit. Maybe get more if the contract calls for it. The buyer, once a parasite always a parasite. --174.210.x.xxx




Buyer backed out (by Robert J [CA]) Posted on: Jun 24, 2022 5:05 PM
Message:

I require a $25,000 deposit from the buyer. They have only 10 days for their due diligence period. After the 10 days, the buyer has to commit to purchasing the property and the Deposit goes into my pocket and is NON-refundable. --47.156.xx.xx




Buyer backed out (by Lana [IN]) Posted on: Jun 24, 2022 5:11 PM
Message:

They are wrong. They are assuming you won't find it worth your time to spend money going after 3K. --216.23.xxx.xx




Buyer backed out (by MikeA [TX]) Posted on: Jun 24, 2022 5:43 PM
Message:

I don't think they can do that by CFPB rules, you might tell them that you are going to file a complaint with the Consumer Financial Protection Bureau and discus with your lawyer about a suit against the closing agent which should include the escrow amount plus court and legal costs, I don't know if you can go after damages as well. The closing and escrow agent is responsible for assuring that the conditions of the sales agreement are completed, they don't need the buyer's release they have it on the original contract. They are hoping you won't pursue it so they get to keep the escrow funds in escrow indefinitely. That is a sleazy approach for the closing agent.

--209.205.xxx.xx




Buyer backed out (by Ken [NY]) Posted on: Jun 24, 2022 6:21 PM
Message:

No escrow agent around here will release the funds till both parties agree to whom it gets released,on top of that you cant resell the property to anyone else because there still is a contract on the property so i generally end up giving them the money back to get them to sign releasing the contract so i can get on with trying to sell the place --74.77.xx.xx




Buyer backed out (by Robin [WI]) Posted on: Jun 25, 2022 7:57 PM
Message:

What Ken said. You can get to keep the money, but the cost is regrettably high. --24.1.xx.xx




Buyer backed out (by John [VA]) Posted on: Jun 25, 2022 10:53 PM
Message:

Robert J

Does your settlement company make the buyer sign a release of funds? They're saying the buyer has to agree regardless of what my contract states. They said it's Virginia state law. --100.4.xx.xxx




Buyer backed out (by FloridaNative [FL]) Posted on: Jun 26, 2022 10:09 AM
Message:

Agree with Robert J - those small EMD's indicate a flaky buyer. Here we collect 10% of purchase price for EMD for cash buyers + POF's in their account.

If its a small deal under $250k, then I try to get more EMD than 10%. Nice round numbers like $50k. Something that isn't walking away money. $3k is walking away money. If its a settlement - we turn down the offer as that money is "if come money". If the settlement comes through, then they will pay the EMD. Settlement money is fine if its already in the claimant/buyers account. Not okay if it's not already disbursed from the settlement attorney to the claimant/buyer.I had to learn this one the hard way years ago. --73.205.xxx.xx




Buyer backed out (by John [VA]) Posted on: Jun 26, 2022 12:22 PM
Message:

Florida Native, I didnt really understand what you meant towards the end of your message?

My buyer had made the deposit to the settlement company. The settlement company is now saying the buyer has to agree to release it even though the buyer provided no excuse to not being able to close. My contract clearly states I receive the emd and the law states that the settlement has "option" to send a 15 day extention letter to the party that didn't close but the law also states the emd is to be dispursed based off the details described in the contract. --100.4.xx.xxx




Buyer backed out (by Ray-N-Pa [PA]) Posted on: Jun 27, 2022 7:13 AM
Message:

What was your sales price? If the thing is a cheap place $3,000 might be right. If the place is seven figures - up the hand money.

Escrow companies are suppose to be neutral to both sides, so without a release signed on both sides, the contract wording doesn't mean much.

Since you are filing suit for such a small amount (ONLY THE HAND MONEY AND NOT THE $30,000 in OPPORTUNITY COST) you should be able to do this at the lowest level of the court system - providing you are doing this deal in an LLC. Cost around here is about $160 --24.101.xxx.xxx




Buyer backed out (by Nicole [PA]) Posted on: Jun 27, 2022 1:02 PM
Message:

I agree that without both sides signing the release, the deposit gets held. You don't file an actual law suit. Read your contract. You go to mediation or arbitration. Like stated above, you also technically can't sell the property to anyone else until this is resolved.

Robert in CA is probably the only seller in the entire country who actually gets the down money handed to him prior to closing. --98.237.xxx.xx




Buyer backed out (by Ken [NY]) Posted on: Jun 28, 2022 7:01 AM
Message:

Ray,assuming you are talking about small claims court,it costs $160 in PA,that would be $20 here but a LLC cant bring a case in small claims court here --74.77.xx.xx



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