Legal Question in Real Estate Law in New Jersey
circumstances allowing seller to keep deposit
If a deposit to buy a house is released from an escrow account of a realtor back to the buyer without the sellers consent or knowledge, which is clear violation of the written contract, what should the seller do?
eg.- seller changed their mind about the purchase due to the interest rate they were offered and asked the realtor for their deposit back. Sue the realtor? Is it neccesary to prove any damages?
1 Answer from Attorneys
Re: circumstances allowing seller to keep deposit
Was the contract out of attorney review? Are you sure that (1) the attorneys did not agree to the release (2) the contract had no contingencies that permitted the return of the derposit (e.g., was there a specific interest rate for the mortgage in the contract?) (3) Had any mortgage contingency not been satisfied?
If there was a completed contract and a clear violation, you have a claim against the broker - limited to the lost profit on a resale, if any, and expenses incurred for the terminated contract. You also have a claim against the buyer for the same damages.
Walter
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