When a buyer enters into a contract with a seller to buy property, usually a deposit is required. The usual contract requires that the seller’s usual old remedies include liquidated damages or specific performance in the event of a default by the buyer. This means that if the buyer does not follow through on the contract, a specific amount (usually the deposit) will be forfeited to the seller. Or, in the alternative, the seller can go to Court and ask the Court to make the buyer buy the property. This is very unusual but there are some circumstances where it can occur. A recent case, San Francisco Distribution Center, LLC v. Stone Mason Partners, 39 Florida Law Weekly, D. 790, showed exactly how enforceable these contracts are. The seller sued a buyer for breach of contract. The buyer tried to get out of paying forfeiting his deposit because the seller subsequently sold the property. The Court did not buy that and the seller ultimately lost a $400,000.00 deposit on a $5 million property.
Clearwater Real Estate Attorney
Tony Damianakis is a certified Real Estate Attorney in Clearwater Florida and can provide expert legal assistance in all real estate transactions. Please email us if you have any questions.
