Legal Question in Business Law in Massachusetts

default on real estate transaction

I have been involved in selling a business with the same buyers for over 9 months (because of extentions etc) during this time they have breached the contract by telling my employees they were buying the business etc and now they were supposed to perform on the current P&S by obtaining financing and notifyiny us in writing as by specific date as to whether this is taking place or not. We are holding a deposit with a signed P&S contract. We have now learned that they have not notified us in writing and they have not even obtained an appraisal to date.They want another extention but this is not a possibility. Can we keep the deposit to pay for our damages and lawyer fees?


Asked on 4/11/06, 9:09 am

2 Answers from Attorneys

Re: default on real estate transaction

Without reading the P&S, no one can give you a definitive answer. However, if the agreement has a liquidated damage clause and they failed to meet the requirements of the P&S you should be able to keep the deposit. I would suggest you contact your own attorney ASAP.

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Answered on 4/11/06, 9:18 am
Barry Levine Law Office of Barry R. Levine

Re: default on real estate transaction

All of your rights and obligations should be contained in the purchase and sale agreement. You say that you're selling a business, but the title for your reply is default on a real estate transaction. This is somewhat confusing. My recommendation would be to contact your attorney without delay. He/she should be able give you the best advise as to whether or not you can retain the buyer's deposit.

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Answered on 4/11/06, 2:16 pm


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