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Keeping a deposit as a seller if buyer cancels?

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K

KarenStlouis

Guest
What is the name of your state? New Hampshire

I am the seller of a home. I recently advertised my house in "isoldmyhouse.com". The first couple that saw it made an acceptable offer. We signed a P&S. It is signed by both parties.

We agreed to $1000 deposit. The contract states that "after dilligent efforts, if mortgage cannot be obtains under prevailing rates and current conditions" by (date), then the buyers have the right to their deposit back. No interest rate cap or anything of the like was defined.

After two weeks, and several days prior to the (date), the buyers emailed me to say "the rate we were approved for is mugh higher than anticipated, making this house unaffordable so therefore we will not be able to buy it. Please send back the deposit".

I did not send the deposit back, since in my eyes they were not entitled to it back since the contract did not state that they could cancel if they didn't like the rate, only if they were unable to obtain a mortgage at all. Well, they stopped payment on their check after I had deposited it, and my bank withdrew it from my account.

I think I should be able to take them to small claims court. To this day, a month later, I still don't have anything in writing from them canceling the P&S.

Any thoughts? Please help
 


xrevvyx

Member
this is by no means LEGAL advice -
but is it REALLY worth 1k ?? it may just be a good idea to give it back - karma can really bite you in the ass for this one..

if a few % points make your home unaffordable - I feel for their financial situation - and even if you won a judgement - good luck getting paid ... you're better off cutting your loss (of time) - and putting it back on the market ..
 

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