Expert: Dick Dennis - 4/14/2008

Question
We listed and sold our home, we thought, in 2007.  The buyers for our home lost their mortgage commitment (they claimed) one week prior to the closing date.  They stated that the mortgage company backed out on them, but they never could produce a letter from that company stating that this did in fact occur.  We were instructed to return their $36,000 deposit.  In turn we had gone ahead and put a deposit down on a home for $5,000.  This was to be applied to a purchase of the property one year from the date of the contract.  This was a lease with option to buy in a year.  We were to lease the property for one year and then give the sellers an additional deposit and we would mortgage the remaining amount.  Needless to say this fell through because the purchase of our home fell through.  Our home is still listed for sale.  The home that we wanted to purchase has since been sold.  WE had to return the $36,000 to the failed purchasers of our property and we have not been able to get back the $5,000 from the other property.  Do we have any recourse?  We have checked with several attorneys and they all give us different answers.

Answer
Keep on looking for a good REAL ESTATE attorney. If everything you stated is true, a good attorney would have the buyers account for everything. You should NOT have returned the deposit WITHOUT evidence from any Realtor involved in the transaction. If there was no Realtor involved, then for sure you should not have returned the deposit without consulting with a REAL ESTATE attorney. You have a very big case. You can sue for damages because of all the inconveniences they -put you through. A good Realtor would not have let the buyer back out without accounting for the loan qualification.

I do wish you well, Karen.

Dick Dennis