Legal Question in Real Estate Law in California
We canceled a real estate deal after releasing all contingencies. We understand we are at the sellers' mercy regarding our deposit, but their lawyer is also threatening to collect his legal fees from us (despite not being in mediation or arbitration) as well as any other expenses his clients incur. Is it possible for them to collect anything beyond our deposit?
2 Answers from Attorneys
That depends on whether you and the seller checked the liquidated damages box on the purchase agreement and whether you released the deposit to the seller without a fight. If both are true, then the claims have no basis.
Sure. The law is that the deposit may be looked to for the seller's damages when the buyer breaches. But it is not a limit on the seller's damages, and it does not prevent the seller suing for more.
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