Expert: Jane Doe Date: 3/28/2008 Subject: Commercial Real Estate Breach of Contract
Question My parents(the sellers) are in escrow on a large commercial property in LA. The contingency periods all passed months ago and escrow closing has been extended for the buyers benefit for 3 months. This week (one week before COE) the buyers have requested another month's extension. The answer is no, close escrow on time. Part of the deposit has already been released to an accomodator and there is more in escrow. The released deposit is more than the liquidated damages clause originally signed because of the extensions. How do we avoid problems if they breach the contract and don't close on time and what funds can be kept? AIR purchase agreement was used. Also, what is the deposit that my parents keep view as - part of the 1031 money? income for the IRS??
Answer Dear Kathy: After reading your important posting, I must advise you that you are seeking serious legal advice from the wrong source. Allexperts.com is an informal, volunteer, free, community chat/networking public Internet bulletin board, not meant for serious legal advice. I am a licensed real estate sales agent, not a real estate attorney. It is my belief that The Department of Real Estate would not wish any realtor to give legal advice. I would suggest you contact your legal counsel. Best of luck and I hope all your issues are resolved. --V
