What is the name of your state (only U.S. law)? NJ
I am a NJ business broker.
Put together a deal between the buyer and seller for the purchase of a business. On 12/31 I picked up a deposit from the buyer in the amount of 5K along with a signed purchase contract. Closing date was set for 01/15. Told the buyer that the deposit check would be cashed after acceptance from the seller as stated in the purchase contract. Seller signed contract that day.
Check was made payable to me as the broker as per the contract.
On 1/2 I cashed the check at a local check cashing establishment. They verified that funds were available and everything was good.
Contacted the buyer several times to make arrangements for the business transfer since the BUYER was trying to rush the sale and close in only a few days.
Against my advice and strong belief, neither party wanted to use attorneys for representation. I assume it has to do with the cost of the business was only 65K.
On 1/13 I received a call from the check cashing establishment that the check was returned NSF. I made several attempts to contact the check maker and the person named as "buyer" on the contract with no success. It should be pointed out that the person who wrote the check was the boyfriend of the person labeled on the contract as "buyer".
When it became clear that I was not receiving any response from phone and email I sent via certified mail a letter pointing out their contracted obligation and replacement for the "hot" check must be made. All contingencies were removed which would allow the buyer to cancel.
Now, I have the seller angry (not with me) and the check cashing place contacting me for a replacement.
Anyone have any thoughts? Thank you.
I am a NJ business broker.
Put together a deal between the buyer and seller for the purchase of a business. On 12/31 I picked up a deposit from the buyer in the amount of 5K along with a signed purchase contract. Closing date was set for 01/15. Told the buyer that the deposit check would be cashed after acceptance from the seller as stated in the purchase contract. Seller signed contract that day.
Check was made payable to me as the broker as per the contract.
On 1/2 I cashed the check at a local check cashing establishment. They verified that funds were available and everything was good.
Contacted the buyer several times to make arrangements for the business transfer since the BUYER was trying to rush the sale and close in only a few days.
Against my advice and strong belief, neither party wanted to use attorneys for representation. I assume it has to do with the cost of the business was only 65K.
On 1/13 I received a call from the check cashing establishment that the check was returned NSF. I made several attempts to contact the check maker and the person named as "buyer" on the contract with no success. It should be pointed out that the person who wrote the check was the boyfriend of the person labeled on the contract as "buyer".
When it became clear that I was not receiving any response from phone and email I sent via certified mail a letter pointing out their contracted obligation and replacement for the "hot" check must be made. All contingencies were removed which would allow the buyer to cancel.
Now, I have the seller angry (not with me) and the check cashing place contacting me for a replacement.
Anyone have any thoughts? Thank you.