Legal Question in Real Estate Law in Massachusetts

Re: lean

Generally, Purchase & Sale agreements provide that if you back out of the deal, the seller can keep the deposit as damages. That kind of provision in the agreement is usually enforceable. Unless the agreement had an exception for your inability to get financing, you probably would not be able to get the deposit back. It would be necessary to see the written agreement before saying with any certainty. To get a lien (note the spelling), you would have to go to court and get an order from a judge. Doing so might cost you more than the amount of your deposit, so think twice about this. I would be happy to look at the written agreement if you want to call for an appointment. 617-367-4260. Best wishes.

Re: lean

Typically there is a provision (or clause) within the Offer to Purchase or Purchase and Sale Agreement that provides for the return of your deposit if, despite your "best efforts," you were not able to obtain financing; it's also correct that there may be some contractual responsibility on your part to promptly notify the sellers once it's clear to you that the financing will not go through; your inquiry raises a few important questions, is the deposit being held by a realtor, or is this a for-sale-by-owner situation where you gave the deposit to the sellers to hold; if a realtor is holding the deposit and there is a dispute between yourself and the seller/sellers as to who is legally entitled to receive it, the realtor may simply hold the deposit (or place it into the hands of an appropriate court) until the legal dispute between you is resolved in a court of law.

My name is Len, and I am an attorney admitted to practice in California, Massachusetts and New Hampshire. Our firm has offices in Methuen, Mass and Londonderry, NH. You can reach me at (603) 434-3437, and you are welcome to fax whatever documents you may have for my review to (603) 434-9578.

Len Foy

Gould & Gould

Tel: (603) 434-3437

Re: lean

A lawyer would have to look at the documents from the deal to give you advise. Usually there is a clause that allows you to cancel the purchase if you don't get a loan but you also have to apply properly and give notice of the denial of a loan.