Q: Buyer failed to provide earnest money or close per contract. What recourse is available?
We have a contract through McGrew Real Estate to sell our home. Buyer failed to provide earnest money within five days per terms of contract. Then failed to close according to the contract. What recourse is available to us? We want to enforce the terms of the contract or at minimum collect the earnest money promised ($20,000 on a $660,000 agreed to price). We want to put the house back on the market and sell it. Can/should we bring a legal action against the buyer? Will that stop us from selling the house to another buyer?
A: If you initiate litigation, you may be prevented from selling the house to another person during the tenure of the lawsuit, since the real estate is the focal point of the lawsuit. Since there was no deposit given, you have a failure of consideration and you most likely have the opportunity to move on from that purchaser.
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