Legal Question in Real Estate Law in Connecticut

Received 1% dep selling my home on 9/9, second deposit due in 15 days, 9/24. Did not receive 2nd dep, but I spent money anyway on his punch list as I agreed to advance the home inspection date (no realtors). Home inspection was to be presented to me by 9/24, but buyer said his attorney told him to have me sign an addendum advancing the date to 10/9 as he felt it was a compliance date by which I had to complete the punch list. I signed it AND completed the punch list before 10/9 and realized I was expending funds at the buyer's behest while the mortgage contingency date had not even been met 10/8. His lawyer would not have misread the contract as it clearly stated buyer was to deliver the home inspection contract by 9/24 in order to disclose structural/mechanical problems for which the buyer could abort the contract. He terminated on 10/6 for an issue already corrected but did not afford me the opportunity to prove the remediation. Is the buyer in default by not delivering part 2 of the dep? Am I entitled to keep the initial $3,600. as liquid damages? Does the fact that I agreed to advance the home inspection date and perform repairs and did NOT demand part 2 of the deposit relieve the buyer of all risk, including the initial 1%($3,600.)? Or, does his default allow me to keep the original deposit as it barely covers the money I spent at his behest (mainly cosmetic issues and a small electrical fix).

Thanks.........Linda Kirbus


Asked on 10/13/10, 4:20 am

1 Answer from Attorneys
Kristen Garlans Kristen Garlans, Esq.

It sounds like you have a good shot at keeping the deposit, if he withdrew from the contract for a "made-up" reason. However, without looking at the contract that you entered into, and at the addendum that you signed, it's difficult to say for sure.

There are also a number of questions to address Did you notify the buyer when you completed the punch list? Has the buyer sent you a written termination letter yet? Have they asked for their deposit back?

You are probably in for a fight, since buyers typically want their deposits back, and you aren't supposed to spend the money before the closing. But depending on the facts and the contract, there is a good chance the buyer has given up his right to the money.

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Answered on 10/18/10, 11:29 am


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