Q: How do you pursue buyers in Fairfax County Circuit Court who defaulted on a real estate contract?
Hi,
Last summer we were under contract to sell a home in Fairfax County. After delaying settlement several times, the buyers do not show up on the day of settlement and leave us hanging. They later send us an email saying they were unable to obtain financing and would offer us $2,000 of the $7,000 earnest money deposit held by the Title Company.
Buyers only had a home inspection contingency and there were no home inspection issues.
We put the house back on the market last Fall and were able to get new buyers who closed on the home recently. The price paid by new buyer was $25K less than what the defaulting buyer was under contract for. As I understand, the title company is still holding onto the defaulting buyer's $7K escrow.
We would like to pursue the original buyers for damages. Please reply if you can assist in this regard, and let us know best strategy? Looking to hire yesterday. Thanks!
A: First, you need a lawyer to review the contract. Many contracts in Fairfax provide that the damages for a breach by buyer is limited to the earnest money deposit. Not all contracts are the same, and all can be modified, but if you signed that clause, it is enforceable. Many lawyers provide discounted initial consults to help guide you.
1 user found this answer helpful
A: Your rights to make a claim for damages are contained in your real estate contract. It may be that you have a right to liquidated damages that were limited to the earnest money deposit. It may be that you have a right to the loss on the second sale. I never want to guess at what the real estate contract provides. I will be happy to review your contract and determine what are your rights but I charge for my time. If you are interested, please call my office.
1 user found this answer helpful
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