Q: Real estate question.
A buyer wanted to purchase my property in Dearborn Heights on a land contract. He gave me a cash deposit to hold property
No signed contract no receipt. A week after I got a call from buyer that he does not want the house anymore and he wants his deposit back. Can I keep the deposit or do I have to give it back?
Without ANYthing writing it is hard to say for sure where this stands.
Generally speaking an 'earnest money' deposit is something that can be forfeited if the deal falls through because of something the buyer does or doesn't do properly. BUT without an offer to purchase the status of that deposit is unclear.
CAN you keep the deposit? Sure.
SHOULD you keep the deposit? Unclear.
WHAT HAPPENS if you do? You open yourself to a lawsuit.
What SHOULD you do?
Seek local representation to review all the facts and provide you some legal advice about the best course of action.
--This answer is offered for information only and does not constitute legal advice or create an attorney/client relationship. Please seek local licensed representation if you have further questions.
Brent T. Geers agrees with this answer
1 user found this answer helpful
A: If the agreement was for you to "hold the property from putting the home on the market, for a short then you may be able to keep it. Otherwise my suggestion is that you return the deposit. Without a written purchase agreement, you do not have a valid contact. Real estate transactions, especially those dealing with purchases, need to be in writing under the Statute of Frauds. Based on your facts, you haven't even detailed the terms of how the deposit was to be treated. Questions remain as to when the deposit was to be credited to your proposed buyer or what bank or title company was holding the deposit. What other contingencies affect the deposit? Without written detail, this 'transaction' is difficult to enforce. Hence, the need for a written document with specific provisions to guide the parties to a closing.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.