default on contract

i have a home in florida that was under contract to be sold.
the buyer insisted on a on or before 7/1/01 closing date. we signed the original contract on 6/5/01 which gave him 10 days to show written financial disclosure and 10 days after that to do a home inspection and a termite inspection. the buyer is in maryland so things did not go on schedule. we were never given a formal written financial disclosure but we were asked to extend the closing date to the 12th of july. we complied and even agreed to "creative financing" so he could have moving money. 2 days before closing we were told that he had "uncorrectable" problems with his credit and that he could not get financing. his contract extention expired on 7/12/01. he put down good faith money being held in escrow. i feel that that is now my money since he broke the original contract by not fulfulling his time frame for financial disclosure or the home inspection. his realtor wants us to sign a release for this money and my realtor is actually suggesting that we do this. my house was off the market for 6 weeks and i feel that his "good faith" money should be forfit to us now. what should i do? is this correct? should i tell my realtor to go to the florida real estate commission? and last but not least should i get a new realtor? thanks for your help because i am truly lost on this one.

[HomeGuru]

If the contract was subject to financing (which most are, then you must return the deposit.

The contract will control the outcome. Please read your contract carefully.

Generally, there is a provision in the contract that addresses whether the seller would be entitled to retain the deposit. Was the sale contingent upon the buyer getting financing? If it was, then he is entitled to his deposit. However, the buyer cannot arbitrarily decide to avoid the contract by failing to obtain a financing.

Again, review your contract carefully before you sign off for your realtor.

For future reference, it is always a good idea to have an attorney review a real estate contract to make sure that all possible contingencies are addressed.

You should schedule a formal consultation with a lawyer. A good means of obtaining an attorney referral is by contacting your State's bar association or your local county bar association. They probably have a web site and charge a nominal fee for the referral. Most attorneys either provide a free initial consultation, or charge a nominal fee.

Good Luck, Elliot Jay Goldstein (offices in Tampa and St. Petersburg)

The above information is provided as a courtesy, without any consideration and without knowledge of the specific facts. Do not rely on this information. Seek a formal consultation with an attorney.