Posted by Myron on January 02, 2005 at 24:52:20:
$4000.00 DEPOSIT ON A CAR AND BALANCE OF $11000.
I AM THE SELLER AND THE BUYER GAVE ME THE DEPOSIT ON THE CONDITION (A SIGNED CONTRACT THAT HE AGREED TO) THAT BALANCE HAD TO BE PAID ON A CERTIAN DAY OR THE DEPOSIT WILL BE FOREFITED AND DEFINATELY NO MONEY TO BE RETURNED, AND BUYER NEGLECTED TO FOLLOW UP AND WANTED TO BACK OUT OF THE DEAL. IS HE ENTITLED TO HIS MONEY BACK??
Deposit on Purchase - Posted by Gary
Posted by Gary on November 10, 2004 at 09:22:35:
I tried to purchase a property over the summer, put $1000 down and made it contingent on suitable financing. The deal fell through as the financing just didn’t work with the price. I’ve been trying to get the deposit back (through her real estate agent) and she won’t sign the release for the deposit and the RE Agent says that they can’t release the funds without her approval.
I’ve been advised to take her to small claims for the thousand and I’m wondering what else I’m entitled to: interest, court costs, travel (it’s not in my state), but what about the tremendous time investment in trying to get her to just sign the release over the past 2 months?
Any ideas?
Re: Deposit on Purchase - Posted by Natalie Smith
Posted by Natalie Smith on November 10, 2004 at 13:09:40:
You may save some time and expense by just letting them keep part of the deposit for their trouble. I realize that you are entitled to your deposit back since the financing didn’t go through, but try and see their side of it. They probably took their house off the market for you, and they have to go through the time and expense of reselling the property and the carrying costs associated with all of this.
Again, a compromise might get this resolved faster.
Re: Deposit on Purchase - Posted by eric
Posted by eric on November 10, 2004 at 11:23:06:
Small claims court is your best avenue for that small of an amount. You will have to look at the purchase agreement to find out what fees and costs your are entitled to. In CA, Civil Code section 1057.3, provides for the recovery of attorney’s fees, costs and a $1000 fine for the wrongful witholding of a deposit.
As for the time you spent yourself, generally the courts will not award any damages for your own time since your time is not considered as damages “incurred” as a result of the breaching party’s wrongful conduct. It has to be actual money spent, not your own time.
Re: Deposit on Purchase - Posted by tom
Posted by tom on November 17, 2004 at 11:12:58:
you need to talk to an attorney about how to file a lien on their property so as to hold up any future sale if they don’t pay you.
i would not go the small claims route, as all you get is a judgement. to enforce this judgement may take more time, and teh property would be sold by then (perhaps).
best,
tom