Posted by Tim Fierro (Tacoma, WA) on January 17, 2003 at 10:26:16:
If you are using local contracts used by agents, this clause may already be in the contract. Review it and you will find your answer. If this is not addressed, then write up a line that you can include in an addendum on your deals that reads something like this;
In the event of a buyer’s default without legal cause, the seller will keep the ernest money as full liquidated damages.
Use Realtor’s or Custom-made contract? - Posted by ChrisC
Posted by ChrisC on January 16, 2003 at 19:53:15:
Dear Investors,
I would like to have a clause in my purchase/sale agreement contract that states the seller’s only recourse upon buyer’s default is to keep the deposit. At this time I’m totally broke, can’t find a partner, and would like to limit my risk to the deposit. Should I go pay a lawyer to create this? Or does someone have a copy containing this clause that perhaps I could buy or use?
By the way, I’m in Illinois.
Thanks,
ChrisC
Re: Use Realtor’s or Custom-made contract? - Posted by Brad Crouch
Posted by Brad Crouch on January 17, 2003 at 23:29:44:
Chris,
This is called a “liquidated Damages” clause.
Brad
Re: Use Realtor’s or Custom-made contract? - Posted by Mark-IL
Posted by Mark-IL on January 17, 2003 at 11:39:19:
Chris,
Check the provisions on the contract you’re already using. It may already be there in one form or another. Also, I get the impression you can’t get a mortgage anyway. If that’s the case, use the mortgage contingency as your ‘out’. Give yourself 45-60 days and if you can’t flip or find a partner, you can get your deposit back without defaulting under the contingency.
Mark