What happens if the deposit is not paid?
The Listing Agent inquired since he received the following message:
“My clients have decided not to deliver the deposit cheque because the house is suddenly in an inconvenient part of town for them.” (Buyer’s agent).
There is a clause conditional upon Financing.
So, what do you do if you are the Listing Agent?
Here’s the protocol:
- Wait until the conditional period expires.
- Terminate the deal,
- don’t sign a release,
- put it back on MLS,
- sell to a second Buyer for more,
- sue for the deposit and keep that too (as long as you have evidence of bad faith).
That would certainly have the Buyers enter into a discussion with their own agent.
Brian Madigan LL.B., Broker