Real Estate Law
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Why will the buyer not sign? Can you please clarify exactly what happened? The seller would want to keep the deposit if the buyer defaulted,
Thank you. The truth of the matter is that if there is a dispute and this can not be resolved between the parties, the money will be held in escrow and not released. At that time, the burden would be on one of the parties to take legal action, to get the money which they feel they are entitled to. In this case, the buyer either sues for the release and their deposit back or the seller sues for damages, under the contract, since they failed to close. You, as the realtor, can not get the money released unless all parties agree and it would be at this time, that your client needs to take action and this needs to be litigated.
Your client will, if the buyer will not sign the release and give them the deposit. The money will not only sit in escrow but they may not be able to relist the property until this is resolved.
Because if there is a dispute with the property and the buyer still wants to proceed and the seller refuses, then there could be a pending lawsuit against the property and another party is not likely going to want to get involved with a home that is subject to a lawsuit. You should review any contract which is presented with a new offer, made by a new buyer and make sure it does not ask your seller to disclose any possible pending litigation. The buyer may sue for specific performance and ask for a forced sale of the home. I am sharing with you the obligations which you may have and should look into, when representing your customer and going forward, with a pending dispute.
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