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Home sellers make this mistake and don’t even know that it is a mistake.

Written by on Thursday, 29 December 2016 3:04 pm
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Okay, so you are in the middle of a real estate transaction when the Buyer breaches the contract and now you, Mr. Seller want to collect damages.  The deposit that was on the contract is low, perhaps only $1000 but your damages are higher than the deposit.  The law says that the Seller can collect as much as three percent of the purchase price right, true, except if you initialed the “Liquidated Damages” provision.  In a standard residential purchase contract where the Buyer will occupy the home, the seller will only be entitled to the deposit amount.   The Seller needs to understand what it means to initial the “Liquidated Damages” provision.  When this clause is initialed by both Seller and Buyer; this provision will limit the amount that the Seller can recover to the deposit amount, should the Buyer breach the contract.  So, should you accept an offer with a low deposit?  It is just fine to do so, but keep in mind that it will limit your recovery amount. 

 

 

If you have further questions or would like to sell your home, call, text, email or message me at 530-306-3494, This email address is being protected from spambots. You need JavaScript enabled to view it..  Have a great New Year’s.


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