Advice about suing over real estate escrow (for sale, lawyer)

[dianemar]

The buyers of our house for sale backed out of our contract. There were $10,000. in earnest money (deposit, or escrow). The contract included a contingency that they had to sell their house first to pay for our house. However, they never put their house on the market and terminated the contract a month after the estimated closing date.

Our contract also stated that we could continue to market our house to cash buyers, but not to contingency buyers, and we would give the buyer a right of first refusal if we found another buyer.

Our lawyer tells us that unless we can show a loss as a result of the failed contract, we have to give the earnest money back. We can sue, but the legal costs would probably exceed the amount of earnest money.

We feel that the value of our house has gone down in the 4 months the contract was in force and that we made repairs to the house as a result of the buyer's inspection.

What good is a deposit if the buyer can just change their minds?

[HelgaB]

In my personal opinion, it was your attorney's job to make this contract enforceable when he reviewed it; he could specify that the buyer had to take specific steps such as listing his/her house with a realtor within a specific timeframe, advertising in major newspapers and online, etc. In your current situation, I would suggest to obtain a second opinion from a reputable law firm.
Good luck!

[emanon]

You are probably out of luck with this deal. I would not use that attorney next time. Earnest money is what locks a deal together. I would not sign a contract if forfiture of earnest money is not properly written into the contract.

E

[Huckleberry3911948]

a forced sale is a bad sale. bad taste in your mouth and everybody elses
if its right to sell your house there is somebody out there who will buy and at a fair price.
i am going to hold to that thought for all i am worth. merry christmas.