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Loren
Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 33476
Experience:  30 years of real estate practice experience.
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It looks like our contract to buy a venice condo will fall

Customer Question

it looks like our contract to buy a venice condo will fall through, because we did not get the mortgage before the closing date. Can seller cliam our deposit?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: florida
JA: Have you contacted the manufacturer?
Customer: we are buying a condo not a product
JA: Anything else you want the lawyer to know before I connect you?
Customer: I'd also like to know what closing costs we are liable for
JA: I'm not sure of the exact price, but there's only a $5 deposit. The rest of the price information will be on the page I send you to.
Customer: price of what?
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Loren replied 9 months ago.

Good morning. I am Loren, a Florida licensed attorney, and I look forward to assisting you.

Does your contract contain a financing contingency which has not expired?

Customer: replied 9 months ago.
no
Expert:  Loren replied 9 months ago.

Thank you for the additional information. I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.

Customer: replied 9 months ago.
the closing date has been extended twice and seller wants $500 to extend it more
Customer: replied 9 months ago.
my wife wants to get out of deal
Expert:  Loren replied 9 months ago.

If you are not able to close on the date specified in the contract, or agreed by the parties, then you will be in default (assuming the seller is not in default).

The deposit will be at risk of forfeit in that situation, as well as any other remedies for breach specified in the contract.

Expert:  Loren replied 9 months ago.

Often the contract will specify the forfeiture of the deposit is the limit of the buyer's liability. That is called "liquidated damages". Check the contract to see if that is the case for you.

Expert:  Loren replied 9 months ago.

I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.

Expert:  Loren replied 9 months ago.

Did you have further questions? Have I answered your question?

Customer: replied 9 months ago.
We have a closing disclosure which specifies a number of costs like title insurance, fees to closing agents and so on. Assuming there is nothing in the contract which limits our liability which of those are we liable for?
Expert:  Loren replied 9 months ago.

If it does not close then none of the closing charges would be assessed. The only other potential damages of any substantive amount are if the seller is forced to sell to another party for less and decides to come after you for the difference.

However, that is a very rare occurrence in residential contract actions. In the vast majority of cases the seller takes the earnest money and that is the end of it.

Make sure to get a release form the seller if you release the earnest money to them to cut off further liability.

Expert:  Loren replied 9 months ago.

Are you still online with me?

Expert:  Loren replied 9 months ago.

If you have no further questions, and have not yet done so, please remember to leave a favorable rating (click 5 stars in the rating section on this page). It is the only way that I am credited by JustAnswer for assisting you.

There is no additional charge to you for rating me favorably.

A bonus is not expected, but is always appreciated.

Thank you!

Loren

Expert:  Loren replied 9 months ago.

I am still online with you.

Expert:  Loren replied 9 months ago.

If you have no further questions please remember to rate my service so that I am credited by JA for answering your question and also so that I may close the question.

There is no additional charge to you for a 5 star rating of my service.

Thank you!

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