Help with regards to default

[mako1324]

Living in NC, property in FL

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Signed a lease agreement for a property on May 15...paid deposit at that time. Lease was to be for September 1, 2007 through February 28, 2008. Also at that time signed a promissory note for $15,000 (paid $100 towards it) with regards to purchasing said property on February 28, 2008 with closing on or around that date. Due to family problems we are not able to complete this sale and move. We gave notice to owner on August 10 of this situation. We are told we are responsible for the $385,000 purchase price at this point when we were assured at time of signing that if we were to default for any reason we would be responsible for the $15,000 promissory note only...the wording of the contract is as follows:

Provisions with respect to default

Default by purchaser: If purchaser fails to performt this agreement, the deposit this day paid and the promissory note this day made by purchaser as aforesaid shall be retained by or for the account of seller as consideration for the execution of this agreement. In such an event the parties agree that said sum shall consitute liquidated damages since both purchaser and seller agree that the actual damages for default or breach of contract could not be readily ascertained at the date of execution of this agreement.


Any advice would be appreciated. Thank you very much.

[HomeGuru]

Originally Posted by mako1324

Living in NC, property in FL

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Signed a lease agreement for a property on May 15...paid deposit at that time. Lease was to be for September 1, 2007 through February 28, 2008. Also at that time signed a promissory note for $15,000 (paid $100 towards it) with regards to purchasing said property on February 28, 2008 with closing on or around that date. Due to family problems we are not able to complete this sale and move. We gave notice to owner on August 10 of this situation. We are told we are responsible for the $385,000 purchase price at this point when we were assured at time of signing that if we were to default for any reason we would be responsible for the $15,000 promissory note only...the wording of the contract is as follows:

Provisions with respect to default

Default by purchaser: If purchaser fails to performt this agreement, the deposit this day paid and the promissory note this day made by purchaser as aforesaid shall be retained by or for the account of seller as consideration for the execution of this agreement. In such an event the parties agree that said sum shall consitute liquidated damages since both purchaser and seller agree that the actual damages for default or breach of contract could not be readily ascertained at the date of execution of this agreement.


Any advice would be appreciated. Thank you very much.

**A: you need an atotrney to review both documents and advise. We can't do that over the internet.