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Posted to misc.consumers.house
D. Gerasimatos
 
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Default Stop Payment on Good Earnest Deposit

In article .com,
wrote:

I am wondering I have a agent that I have some concerns about and I
believe he may of made changes to a house contract with the seller
without my knowledge. He has not cashed my good earnest deposit. If
I stopped payment on the deposit, could the seller go after me?



Sure, but he probably won't. If you do stop payment on the check, make
sure you have a valid reason (as specified in the contract) for doing
so. That way, even if he does try to sue he will probably lose. I had
a real estate attorney tell me that winning a case for non-performance
as a seller against a buyer is very difficult (at least in California),
because the seller will have to prove damages. Typically, if the house
resells again for the same (or similar) price then there are no damages.
Most sellers just move on and sell the house to someone else without
tying up the house in court for months. If they try to sell it and
*can't* (or can't for anywhere near your offer) then you're in a lot
more trouble, which is why you should have a valid 'out' (contingency)
specified when you cancel the contract and stop payment.


Dimitri