Legal Question in Real Estate Law in New Jersey

Re: Return of deposit,after brech of contract

It depends. One thing that you do not say is whether there was a written contract. Since you were paying a sales commission, I suspect that the deal was negotiated by your broker and there was a written contract between you and the buyer. In that case, you should look to the language of the contract to determine what it says about the deposit. If it follows most contracts for real property, you should be able to retain the deposit as damages for the breach. If you need some help with this, check my website for my fax number and send a copy. I will look it over and then be in a position to give you more complete advice.

You have a problem if there is no written contract. The nature of a mobile home depends on whether it is permanently affixed to the land. If it is, and if you also sold the land, then the sale is a real property transaction. If it is not, then the transaction is a personal property transaction. Because of the amount involved, in either case, the law requires that there be some writing (not necessarily a contract) signed by the buyer and indicating the intention to buy. Lacking this, you will probably not be able to enforce the sale or your right to any part of the deposit.

A word of caution is in order. You need to consider your contract with the realtor before making any settlement. A real estate broker is normally obligated to use reasonable efforts to find a buyer who is ready, willing (at the time), and able to buy. Technically, the commission is earned when a buyer meeting those characteristics signs a contract. If this sale is characterized as a real estate transaction or if your contract with the agent provides, the realtor may already have earned the 6% commission. Therefore, if you take less than this, you may be obligated to make up the difference even if you receive nothing from the sale. Normally, the brokers do not enforce that part of their contract as a matter of good business, but the risk is there nevertheless. Ensure that the broker is involved with any action that you take with respect to the deposit and agrees with it. If that action requires a modification of your contract with the broker, you need to get that modification in writing.