Expert: Dick Dennis - 10/29/2008

Question
QUESTION: Buyers entered into sales contract,put deposit down,and put stop payment on the check 15 days later! The reason for stop payment ha nothing to do with the property,and I would like to know if this is legal!!

ANSWER: No, this is not legal, Linda. Check with your Realtor and find out why that happened. Your Realtor should have the answer. Maybe there was something wrong with the house that conflicted with their requirements in the purchase agreement. Maybe the buyer's lender said they don't qualify for the loan, but 15 days is unusually short amount of time to find that out.

If you did not use a Realtor, then check with a REAL ESTATE attorney why that could happen. If the deposit is less than $7,500, you will have to take the buyer to small claims court. Your attorney will explain all that to you. I do wish you well.

Dick Dennis          dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: They cancelled contract and put stop payment on check due to the arrest and expulsion of their son from college.My agent and the buying agent were aware of the stop payment possibility!

ANSWER: Linda, my guess is that your Realtor was sympathetic to the buyer and arbitrarily let them off the hook. If that was done without your permission, then the Realtor could be ON the hook. He/she should have asked you first before letting the buyer escape. Now the ball is in your court. It's up to you if you want to let the buyer off. It's up to you if you want to have your Realtor compensate you. I do wish you well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: We haven't signed off on any release forms as of yet,and their offering us $1000.00 of the $10,000 to release them! I don't feel I should be responsible for the situation,since we crossed all t's and dotted all I's!!!

Answer
Well, then it is up to you if you choose to hold them to it. All they have to do is to make it so they fail the financing with the bank and you lose the buyer, the deposit or any part of it. I am sure their Realtor could tell them how to do that. Like I said, it is up to you.

Dick Dennis