Buying or Selling a Home/Breech of contract
We received a cash offer on our home in Louisiana and we accepted and the only requests were home inspection and a possibility of them needing to close early due to receiving an inheritance. We complied with the inspection requests and agreed to an early closing if it was necessary. 5 days before the original closing date we were told they decided not to go through with the purchase. Now they are requesting that we return the good faith deposit and a release from the contract. My house has not been off the market for 6 weeks. I think we are entitled to the Good faith deposit. Am I right and do I have any or recourse that I can take.
Preliminarily and assuming you have no real estate agent working for you, Patsy, I would not give the buyer the beans from my taco dinner. Furthermore, I would hire a real estate attorney to sue them for specific performance and/or show how you have lost money by them cancelling. Time is money and if you lost another buyer because you had to wait through this sale, that's worth something as well. A good attorney could explain it to you.
On the other hand, it depends on what was written on the sales contract. If the buyer had a contingency in the offer, and there was something that you as the seller could not oblige with, then they would have a legitimate reason to ask for and receive their earnest money returned to them. Since this was a cash offer, there should not have been a financing contingency in the offer. So that is out.
If you do have a real estate agent working for you, then shame on him or her. If the buyer only was represented by an agent, then I would ask that agent why you should not sue him/her, too. The bigger the deposit, the more likely you are to keep it. The smaller it is, you're better off to give them their money back and devote your time to selling the house. It isn't worth it.
I wish you well.