Legal Question in Real Estate Law in Massachusetts

defaulting on buying a house

I was supposed to close on a house Sept. 30. The buyer at the last minute was not given financing due to not being totally honest on their mortgage application. They gave a $13,250 deposit (5%). They had no written protection in the agreement in case their financing did not go through. They did not ask for an extension by the date they should have. What happens to this money? Now I need to find a new buyer which will take time, and cost me mortgage payments. I now will have 2 mortgages to hold!


Asked on 10/07/02, 2:40 pm

1 Answer from Attorneys
David Slepkow Slepkow Slepkow & Associates, Inc.

Re: defaulting on buying a house

Assuming that the money is being held in escrow, I would demand immediate payment of the money from the escrow. If the buyer refuses to allow the escrow money to be released to you, you will need to file a lawsuit to recover the money. You may also be entitled to seek damages from the buyer over and above the escrow amount.( however it depends on the exact wording of the purchase and sales agreement.) I would be happy to set up a free initial consultation with you. I am Licensed in both Rhode Island and Massachusetts.

David Slepkow

401437-1100

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Answered on 10/07/02, 3:03 pm


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