What Happens When a Home Sale Fails

Home sellers may be hit hard when would-be buyers are unable to complete a purchase. Many seek to take the buyer’s earnest-money deposit, insisting that they may have missed out on the chance to sell to another buyer; but experts say buyers will get the deposit back if the reason for the deal falling apart is within the parameters of a contract contingency. Sellers also might be prevented from suing for breach of contract due to arbitration clauses. If the buyer walks away due to problems found during the home inspection, sellers must disclose these findings to future prospective buyers. A failed deal may even prevent them from proceeding with the purchase of another home. However, as long as the failed deal was not a short sale, the seller’s agreement with the listing broker will continue, so there is time for another buyer to be found. | Read More