Hello Luis. Sorry to hear your buyer vanished. That's certainly unusual. What your recourse is, should be answered by a licensed attorney and it will depend on the facts of your case as there is no law without facts. Right now we don't know what happened to the buyer and therefore we don't know whether there are extenuating circumstances that would justify the failure to perform. He could be unconscious in a hospital and therefore unable to perform.

Many contracts contain liquidated damages clauses that limit the amount of money a seller can recover in the event of the buyer's failure to perform. Again, this is a question for an attorney. In CA, the liquidated damages cannot exceed 3% of the purchase price. Before you go out and sue the buyer for damages, I would also carefully evaluate the time and money that's involved in a lawsuit and the likelihood that you'll be able to enforce the judgment. You'll have to be prepared to prove your damages with a degree of certainty and many times the damages are too speculative or can only be assessed until after you have sold the house to someone else (i.e., you sold for less). Good luck and I hope you'll be able to find a good new buyer soon.

Are you the seller? Do you have an attorney?

If the buyer is in breach, you can sue for damages. I don't know all the details, nor do I have a copy of your contract, nor am I an attorney. From the limited info here, this is my best take on the situation (but you need to have a retained professional advise you prior to making any decisions).

If you have an attorney, he/she should have a deposit (or a first and second deposit, both) in his/her escrow acct. Time of the essence may have already been served. The breach, or potential breach needs to be addressed, with an opportunity for the buyer to perform needs to be provided.

Upon the passing of the date set forth in the time of the essence, you will probably be able to begin to remarket your property as active and available. (Again, lacking details, this is an overview. You must consult with a retained pro for advice that is based upon your specific circumstances.)

The $$ in escrow from the deposit would become the source for payment for any damages. It is a common misconception that the seller automatically gets to keep the entire deposit. It depends upon the contract terms, and the amount of your damages.

If your actual damages surpass the amount of the deposit, you can sue for the difference. I rarely see sellers do this. The cost of litigation is too high. Generally, a settlement is worked out, and the seller goes back on the market to find a new buyer. The amount of the settlement is impacted by the circumstances............why did the buyer walk, how much was the depoit, how long was the seller of the market? and more.

For sellers, a larger deposit from buyers is a positive sign that the transaction will close. Buyers don't put up big deposits and walk away. I have seen buyers walk away when a deposit was low and they just didn't want to buy the property.

I have no idea if your buyers walked away, or something substantial happened in their lives that cause this.

Good luck.

Good luck.

he/she probably found a cheaper house, down the street, and with no "skin in the game" easy to walk away from your deal.

anways

good luck

hunt em down and make em buy your house.

that would make a good reality tv show

Luis
I am gathering from your post that you are a Realtor and representing the seller, is that correct?
Assuming it is, then you have an executed purchase contract, correct?
The listing agreement signed with the seller stipulates under what conditions you are entitled to compensation. If you have questions regarding those documents, I suggest discussing your questions with your broker. The listing is technically the broker's and they no doubt will want to collect any monies owed.

Most purchase agreements have the inital deposit (in California it is typically 3%), then additional deposits may be part of the financing portion. I would assume when you say the buyer vanished that you, as the listing agent, were tracking the loan process, including appraisal, approval, and funding, right?

So, IMHO, you should have been able to see warning signs that the buyers were not performing. An attorney could force (legally) the buyers to purchase the property if all the paperwork is completed, however my guess is that just based on your story there is more to this story than is being related here.

As a general note to other readers on Trulia, the listing agent's job is not only to help the seller market the property and solicit offers, but, once an offer is accepted, shepherd it through the escrow process. Anybody can list a property and get an offer...closing escrow is that counts, and IMHO that is where a listing agent earns their money.

So without knowing all the facts, a properly managed escrow should rarely result in a big surpirse at the conclusion. The warning signs would tip off the listing agent that they buyers were not following up on their obligations and prior to the buyers simply vanishing the seller would take steps to mitigate the damage done.

I hope this post is not too long and it helpful.

Luis, I agree with my colleagues that it would be best to consult an attorney. It's unfortunate that your buyers backed out. In this market we have found that many buyers are scared and will back out of a deal or renegotiate terms while under contract.

Best wishes for a quick resolution,

Matt

Hi, this happened to us. Our attorney forced them to closing but it did take about another 7 weeks. If they failed to show a 2nd time they would have forfeited their deposit to us (held in escrow by our attorney.) We had a very tight contract, a good attorney, and we knew the buyers and where they were. Hope you have the same, please call your attorney if you haven't already. Best of luck!

Your attorney should advise you, but the first thing is for him/her to file "time is of the essence" with the other attorney, setting a new closing date. The buyer must be given 10 days to close, then customarily your attorney can begin the process of turning over whatever deposit monies are in the trust account to you if the deal has been abandoned and all contingencies satisfied.

This is a question for your attorney, only they can advise you of your legal rights in this situation.
Good Luck, Sharon Kozinn

Ask an attorney. But in general, you should be able to keep whatever earnest money they gave you as a deposit. You could also try to go after them and force them to buy, provided you can actually find them.