Instead of suing, you do have other options. You could sell your property to that buyer with seller financing, with a 1-year balloon, and that should give your buyer more than enough time to find another lender. This way you won't have to continue to pay your mortgage and the rent. Otherwise, you'll end up wasting more resources (money, time, etc) on your case, it's also possible that you might lose, and you could end up having to compensate the buyer for their legal fees and/or court costs.

I would highly recommend that you consult a real estate attorney before interpreting section 17 of the CAR contract. I would hate to see you waste time and money.

Thanks so much for all information. I've offered all that now Ellen, give them the time line of step performance (in total of 3 more weeks) to close escrow if they release the deposit, but they refuse to release the deposits.

Thanks for the information Don Hickey, but per par 17(B)(2)(iw), if any matter that is within the jurisdiction of a probate, small claims or bankruptcy court, it is EXCLUDED from mediation and arbitration. So, I'll TAKE them to small claims court instead of SUE them.

All good answers so far here: First of all, as agents we are not allowed legally to give you legal advise. I would strongly suggest you speak to a real estate attorney as to your rights in this matter if you want to quit this buyer now. Make sure you bring your attorney a copy of your contract.

As far as asking your agent if he/she has confidence in this buyer closing, I would not say that your agent knows for sure about this, (no one being a true psychic in these matters) and so if you want to give this buyer a chance ( especially if you have no other offers at this time), than if it was me, I'd make them perform to YOUR needs in order for you to proceed with them. The suggestion about releasing the deposit to you was a good one. Give them SPECIFIC times for performing, and write an automatic release of the contract should they not perform by the new agreed upon date whereby escrow will not need their signature to release you should they not perform once you have given them their perform or quit notice. Make sure they must respond to the perform or quit notice, within 24 hours of receipt. Ask your attorney what he/she thinks about these suggestions, and I wish you the very best as I know you are in a VERY tough situation that can happen to anyone. Ellen Hayes, Remax United

Sdca,

You need to bring this up with your Agent and their Broker, if applicable. Ask about a "Notice to Buyer to Perform."

Assuming you used the CAR Residential Purchase Agreement to purchase the property, and this is very important, review Para 16 "Liquidated Damages" and Para 17 "Dispute Resolution" to obtain a basic understanding of your options. Note that you can file a suit in Small Claims Court up to $7,500, but you should read these to Para first.

One final thought: if you do not have another offer waiting "on deck" you may want to show some reserve, but I would only do this if the Buyers come clean, in writing, with the reason why the current lender balked at following through with financing.

Best, Steve

Sdca, you are in an unfortunate situation. You need to speak with your agent and see if the agent is confident this buyer can close. I would ask for additional money in escrow (at least another $5k) and have them agree that if they cannot close within 21 days all the deposit money will be immediately released to you as liquidated damages.

You need to read over your contract. You most likely signed that you are willing to arbitrate this and that the deposit money is acceptable as liquidated damages.

Ask your agent what the chances of this buyer closing actually are. Have you seen their credit scores? Have you seen their proof of funds?

Consult a real estate attorney as well.

You should consult with your agent/broker regarding this