Legal Question in Real Estate Law in California

Re: Buyer backs out of house purchase because loan fell through, can we keep dep

yes, probably, but will need to review contract and examine true reason for failure to complete purchase.

Joel Selik

Attorney

Real Estate Broker

Re: Buyer backs out of house purchase because loan fell through, can we keep dep

This is a factual question that can't be determined with certainity without a review of the agreement. If you can prove what you say, it sounds like you have a good claim to keep the deposit as liquidated damages. Contact a real estate attorney and don't sign an escrow instruction releasing the deposit until you have had a chance to consult with a professional.

Re: Buyer backs out of house purchase because loan fell through, can we keep dep

Whether you can keep the deposit depends on the signed agreement. We will have to review your escrow insructions and contracts. Sometimes, you may have to go to mediation or arbitration rather than filing a lawsuit. Please contact our office on Monday morning at 714 363 0220 if you need assistance.

Re: Buyer backs out of house purchase because loan fell through, can we keep dep

Yes, I think you can, if you can prove the bad faith pursuit of financing. They will likely fight you for it and you will need counsel. You may be able to seek damages in excess of the deposit if you can prove that they didn't seek financing in good faith. Contact me, I specialize in real estate and business litigation.