buyer backing out of contract

[npmadsen]

So My deal did fall through and to take the cake I find out the buyer never sent in a deposit. Is there any can I go after my broker or the title company for failing to follow through on my behalf? Do not want to waste money on a lawyer for nothing.

So sorry
Don't understand no deposit that is terrible
I have no legal knowledge so can not help

 

[gharter]

So My deal did fall through and to take the cake I find out the buyer never sent in a deposit. Is there any can I go after my broker or the title company for failing to follow through on my behalf? Do not want to waste money on a lawyer for nothing.

Would agree that I don't understand how they could not have ever sent in the deposit. When we did our contract, we had to send in the deposit before the process could move forward.
Obviously, I wouldn't use that broker again (sounds like they dropped the ball), but doubtful there is anything you can do to get the deposit money now.

 

[KAT4DISNEY]

So My deal did fall through and to take the cake I find out the buyer never sent in a deposit. Is there any can I go after my broker or the title company for failing to follow through on my behalf? Do not want to waste money on a lawyer for nothing.

Deposits are relatively minimal and personally I would just chalk it up to a bad experience and not use that broker nor title company when you relist, assuming that is what you plan on doing.

I might make an effort to speak to the owner of that brokerage though and see what they say. It was terrible work on their part.

 

[Dean]

So My deal did fall through and to take the cake I find out the buyer never sent in a deposit. Is there any can I go after my broker or the title company for failing to follow through on my behalf? Do not want to waste money on a lawyer for nothing.

I wouldn't bother with a lawyer, you'd only be entitled to half anyway. The chances of collecting are zero and if they didn't send in a contract, you didn't ever have a legal agreement in all states I am aware of plus there's still the 10 day cancelation period once they did sign. If you had a contract but were waiting on closing, the answer is slightly different but the end result is the same. It sounds like the broker dropped the ball on this at least letting it ride out this long either way.

 

[ffcheff]

Thanks for the replies. I figured I was just going to be SOL. Had a nice conversation with the broker, ha ha. He was all excuses no answers.

 

[Disney Dad ADL]

Huh, so you accepted they buyer's offer, the contract went through and passed ROFR, then they backed out right before closing, and there was no deposit that whole time? Seems pretty ridiculous on the broker's end, unless you agreed to no deposit beforehand. I have no legal backing on this, but I feel like the broker owes you half of the deposit, which could be a considerable amount.

We have never sold, but I'm looking at our purchase agreement. Our purchase price was $24,600. We had to put 10% ($2,460) as deposit. According to the documents that we signed:

" If Buyer fails to make any payment or perform any of his obligations there under, Seller has the option to terminate this contract and Buyer shall forfeit the deposit. The escrow agent shall deduct from the deposit all expenses incurred, if any, for escrow fees, administrative fees and title exam fees, said amount not to exceed $150, and the escrow agent is then authorized by the Buyer to pay one half of the remaining deposit to the Broker and one half to the Seller, except that the Broker's portion shall not exceed the full commission."

In our case, if we had backed out, the seller would be entitled to $2,460 - $150 = $2310 / 2 = $1155. Not an insignificant chunk of change.

 

[ColonialMouse]

If you're dealing with a licensed broker and can document that they lied to you, then you could file a complaint. But my suspicion is you weren't dealing with a licensed broker.

 

[ffcheff]

They are a licensed broker and I can prove they lied. They already have another buyer and we are past the ROFR stage. I am just trying to get it over and done with at this point.

 

[ffcheff]

And I already looked up the BBB to file a complaint.

 

[JimMIA]

And I already looked up the BBB to file a complaint.

BBB is a waste of time. If the broker responds at all, they'll just say they found another buyer and you suffered no loss and it will count as a plus for them with BBB.

If you want to file a real complaint, contact the Florida Department of Professional and Business Regulation. They are the agency which regulates licensed real estate brokers in the State of Florida.

I'm not sure there is any grounds for a complaint, though. Although going through all of that time and effort without a deposit is certainly horrible business practice, I'm not sure it's a violation of Florida law or regulations.

 

[malba2366]

They are a licensed broker and I can prove they lied. They already have another buyer and we are past the ROFR stage. I am just trying to get it over and done with at this point.

Probably your best bet. It would be exceedingly hard to prove that the broker accepted the initial offer with the intent to deceive you and that they did not simply forget to collect the deposit so Im not sure filling complaints with the state of Florida would go anywhere.

 

[Supplanter]

Im buying through the timeshare store and I was pretty surprised they sent my contract to disney for rofr without a deposit being received. I was out of stamps and forgot to go to the store for a couple days. They sent it over as soon as the docs were back.

 

[Disney Dad ADL]

Probably your best bet. It would be exceedingly hard to prove that the broker accepted the initial offer with the intent to deceive you and that they did not simply forget to collect the deposit so Im not sure filling complaints with the state of Florida would go anywhere.

I guess it all depends on how much money it was and how angry OP is. I probably wouldn't do anything either, but I'm just kind of like that.

However, if the contract States that there was supposed to be a deposit prior to proceeding, I don't think "I forgot" is a valid defense in court. I think it's totally reasonable to take further action if OP is so inclined, whether it's just making a complaint, or actually trying to recover some of the lost deposit. Especially if the broker was lying to him.

 

[ffcheff]

Its not a lot of money. I am mad that the broker failed to do his job. A contract is a contract. If I broke his exclusive six month marketing clause I am sure he would have come after me for his comission. If the broker and his staff did their job the buyer might have sent a deposit or just cancelled sooner instead of wasting almost three months of my time trying to sell my points. I missed many serious offers.

 

[Deb & Bill]

I guess it all depends on how much money it was and how angry OP is. I probably wouldn't do anything either, but I'm just kind of like that.

However, if the contract States that there was supposed to be a deposit prior to proceeding, I don't think "I forgot" is a valid defense in court. I think it's totally reasonable to take further action if OP is so inclined, whether it's just making a complaint, or actually trying to recover some of the lost deposit. Especially if the broker was lying to him.

I know we got about $500 the first time the buyer backed out after ROFR and about $300 the second time. That's a nice little chunk of change to me.

 

[Millionaire2K]

I'm the buyer of a contract that passed ROFR on April 20th. I emailed the company (not naming) to ask when title company (not gonna name) was gonna charge deposit (I picked CC). My agent was shocked the Title company didn't charge me yet.

I finally got charged my $1800 deposit on April 28th.

My guess is they didn't charge me until after ROFR because they had my CC info and could charge whenever. Also maybe it easier for them to not have to give CC refunds if it didn't pass ROFR.

Seemed odd to me.