Legal Question in Real Estate Law in Maryland

Can I keep a deposit if the buyer does not purchase within 12 wks?

I have a condo that a buyer signed a contract to purchase 12wks ago. She can not sell her house and has given me 7K as a deposit on my condo upon signing. There is no date in the contract on when she needs to settle. I have to settle on my new place in one month. I may be able to sell my condo now to someone else even though it has been off the market. The new buyer has offered much less but I need to sell fast at this point. Can I terminate the exisiting contract and keep the deposit money. She is asking to much for her home and is the reason it will not sell. What is considered reasonable time frame for her to settle? Please help. Thank you in advance for your advise and/or suggestion!


Asked on 10/05/05, 10:47 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Can I keep a deposit if the buyer does not purchase within 12 wks?

It sounds like you put this contract together yourself, as no professional (realtor or attorney) would omit a settlement deadline in a contract. In your situation, the law says that the buyer has a "reasonable period of time" to complete settlement. What is reasonable depends on the facts of each case, but I would think if there are no other contingencies in the contract, you should give the buyer a deadline (in writing), advising her that if she fails to complete settlement by that date, you will consider her to be in breach of contract, and if your contract allows you to forfeit the deposit as a remedy for breach, you will do so.

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Answered on 10/06/05, 11:06 am


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