00:01
The buyer of real estate made a down payment.
00:04
The contract stated that the buyer would be liable for damages equal to the down payment if the buyer broke the contract.
00:10
The buyer refused to go through with the contract and demanded his down payment back.
00:15
The seller refused to return and claimed that he was entitled to additional damages from the buyer because the damages that he had suffered were more than the amount of the down payment.
00:24
Decide and explain your answer.
00:28
A seller may do the following if the buyer decides not to go through with the person.
00:32
Purchase, retain the initial down payment and terminate the contract, sue for breach of contract, or bring action for specific performance.
00:50
Only one remedy is allowed at a time.
01:02
Generally speaking, only one action can be taken at a time.
01:06
If one remedy fails though, you may be able to file another lawsuit for a different reason.
01:12
Remember, your sales contract may limit your options.
01:15
For example, the contract may state that if the buyer fails to close the contract.
01:19
Without good reason, you are entitled to liquidated damages, which is a set amount of money, and that you're not allowed to pursue any other legal remedies.
01:28
It's important to know that if you choose to file a lawsuit, the buyer will file a liz pendens in the public records.
01:35
This notice shows that your property is involved in a lawsuit and you won't be able to sell your property during this time.
01:42
Potential buyers won't make offers and most likely won't even look at the property...