Legal Question in Real Estate Law in Pennsylvania

Re: Real Estate downpayment

It sounds like you have an agreement of sale to sell your house. The buyers paid a deposit of $1500. The sale has not yet closed. They are now claiming that you defaulted. You are claiming that they will default if they fail to settle on the house. The first thing you need to do is read your agreement to see what it says about a buyer's default and a seller's default. Sometimes an agreement of sale will have a liquidated damages clause. A typical Pa. form agreement will say that if the buyer defaults, then the seller can keep the deposit as liquidated damages. If your form says this, and if it is determined that the buyers defaulted, then this is what you are entitled to. If on the other hand it is determined that you have defaulted, then the buyers are entitled to their damages - any money they spent for inspections, for seeking a mortgage, in ordering a title search, etc. Generally, each side must pay its own attorney - unless your agreement of sale provides otherwise. So, read your agreement. If the issue is not clear, then you will either need to consult with an attorney if you believe your position in strong, or find some middle ground to settle with your buyers if you believe your position is not as strong as theirs.