Expert: Sue Bernstein - 8/15/2006

Question
Hello Sue,
My father in law has been notified a few months ago by the state that they are imposing emeniet domain on his property. He has agreed to a price, and has started escrow to buy a property elsewhere, but he has decided that he no longer wants this property..He has put a $1000.00 deposit.. Is he within his legal rights to decline on the purchase of this property before the finish of escrow? What are the ramifications by the sellers if any? He is really concerned that he may be sued.. Please help us with what he is obligated to..
Thanks
Terry

Answer
Dear Terry,

You have to look at the contract that your father signed.  If he still has some contingencies that are yet to be removed he can probably get out based on those.  If he has removed his contingencies his $1,000 deposit may be in jeopardy.  Have your father talk to his agent who can tell him what to expect.  In California most contracts include a liquidation clause meaning that everyone agrees that their liability is limited to the deposit.

Hope this helps and good luck.


Sue Bernstein
www.SueBernstein.com