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Category: Legal
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Experience:  Licensed attorney helping individuals and businesses
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On 7-27-2011 , my mother (Seller) signed a real estate purchase

Resolved Question:

On 7-27-2011 , my mother (Seller) signed a real estate purchase agreement for a Buyer who wanted a 180 day due diligence period (to see if Buyer could get a varience for a 6,000 to 10,000 ft office buliding) and the deposit was $1,000.
At the end of the Due Diligence period Buyer misrepresented himself and said the zoning Board wouldn't approve the varience.
I say Buyer misrepresented himself because after the 180 days, Seller contacted the Zoning Board and found out Buyer never applied for varience so how could Buyer have been turned down. Nether the Sellers agent or Buyers agent or Sellers attorney followed the due diligence along 180 days.
At this point Seller figured that the $1,000 should be the Sellers because the Buyer didn't follow Due Diligence.
Seller at this point for almost a year kept asking and Sellers attorney who said the Buyer would have to release or court would have to release to Seller. Sellers Agent had no Idea where $1,000. was.
On original purchase aggrement both buyer and seller would have to agree about release of $1,000 Deposit who gets what.

When other problems started happening on the property . Seller wrote a letter to get release from Realitor.

Realiter Broker called Seller to appoligize about what was happening on property. At this time on 6-14-2012, Broker states that the realitor never had the $1,000. deposit as shown on Purchase agreement. Buyer on the next day retreived the $1,000 check and said Buyer would give check to Attorney. In New Jersey they have what they call Attorney Review and put changes on contract. The Deposit $1,000 never shows up again.

So from 7-27-2011 to 6-14-2012 Buyer beleived everything was fine with the contract.

My question is was there a contract ?

If not Seller also lost a back up offer on property days before due diligence was finished which Buyer never followed.

Should Seller seek attorney or other avenue through County Prosecutor ?
Submitted: 3 years ago.
Category: Legal
Expert:  INFOLAWYER replied 3 years ago.
Hello and thank you for the question. I am sorry to read of this dilemma. From what you mentioned there is a contract. Buyer breached it by not conducting due diligence and related misrepresentation, and as such seller may retain the downpayment. Seller's recourse is retention of the downpayment.
Customer: replied 3 years ago.

But $1,000 Deposit the realitor never had as stated in Purchase Aggrement and no one has it. I was led to beleive that the $1,000 was there but wasn't. Isn't that called something else.


Expert:  INFOLAWYER replied 3 years ago.
Normally the deposit is given when contract is signed. If deposit is not there, seller may demand it from buyer and sue for it. If a realtor made the mistake and did not collect the deposit, seller may look to the realtor for payment too.
Category: Legal
Satisfied Customers: 51728
Experience: Licensed attorney helping individuals and businesses
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