Fighting For The Principle Can Be Costly

Last fall I represented Sellers whose Buyer never settled.  The Buyer's loan never funded.  And one year later, the parties are fighting over an earnest money deposit.

Per the terms of our contract, it is pretty clear that the Buyer is at fault.  Since he won't sign a release of the earnest money, there has been a law suit filed by him against my Sellers.  The money they are fighting over is easy to double or triple in legal fees just to get one day in court.  So whoever wins is still going to lose when it comes down to money out of pocket.  That is assuming that the loser isn't required by the courts to pay the winner's legal fees.  

Each side is so entrenched in the principle that they can't see the forest for the trees.  The Sellers are outraged at the attitude of the Buyer who obviously was not qualified to purchase their home and strung them along.  He was condescending, rude and down right mean to the Sellers.   I can only guess what the Buyer must feel that makes him keep spending money on his attorney to keep the lawsuit going.   Whatever the motivation, the cost of moving forward for both parties is quickly outweighing the potential reward.

It is easy to get locked into a stance based on principle when you are in a disagreement.  And sometimes what seems like it should be cut and dried can turn into varying degrees of whose more right or more wrong.  

The best attorneys will always advise their clients of the cost of moving forward with an optional lawsuit.  Yes, you may be in the right, but what is the actual cost in dollars, emotions and time that is spent in having your day in court?  All to get a few minutes before a judge to plead that your side is more right and take down a deposit that is no where close to the money you spent, days and nights you worried and time you wasted, stuck in the principle.

There are plenty of things in this world that aren't fair, but sometimes, you just have to walk away from the fight and save yourself the time, money and aggravation.  

 

Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header photos taken by Chris Ann Cleland.

The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.

 
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13 Comments on Fighting For The Principle Can Be Costly

OCT
23
1 Featured Post Outside Blog

I agree with you Chris. It really is senseless for everyone. Good post.
11:13am • #1
1,144,537 Points 124 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Chris Ann this type of scenario makes no sense to me.  Being right at all costs is well just that - costly.  Plus it eats up energy that could be used going forward and to something positive.  Move on I say.
11:24am • #2
1,543,507 Points 116 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Susan:  There comes a point when you have to step outside the hurt pride and feelings of anger and just see that when you continue the fight, the other guy isn't you anymore, you are.

Anna:  Moving on in these situations is definitely not a sign of weakness. 
12:00pm • #3
394,213 Points 30 Featured Posts Outside Blog Hit Router Called Shot Master

Some principles are worth fighting for at any cost.  This does not sound like one of those!  This just sounds like a stubborn person who cannot let it go, which can prove to be costly. 

My time and stress level are real costs and important factors in every decision I make.  Apparently some people feel differently. 
12:09pm • #4
599,957 Points 58 Featured Posts Outside Blog Called Shot Master

Hi Chris Ann. I have discovered that only the attorneys win these type of disputes. I represented a buyer who wanted to get their earnest money back since the loan was denied. Seller refused to sign the release of earnest money form, but the escrow company release the money after 60 days, since the seller would not respond to their correspondence about the earnest money. I was glad this transaction didn't end up in court.
12:19pm • #5
1,543,507 Points 116 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Susan:  Stress level and real costs are important to weigh. Sometimes, we don't have a choice and get dragged into something we have to dump money and time into. 

Jerry:  Certainly, the company holding the EMD can make a decision as to who gets it, but it doesn't mean there won't be a legal battle after.  And there aren't a whole lot of companies that are willing to take that stand.  In this case, the Buyer is also an agent with the firm holding the EMD.  Shocking that they won't release it under their best judgment.

 
12:48pm • #6
753,266 Points 107 Featured Posts Outside Blog Called Shot Master

Hi Chris Ann - Over the years, we have been involved in a few of these, but never one that was as bitterly or expensively fought as yours. Even so, it never seemed worth the time, cost and aggravation, but our clients felt otherwise, and ultimately it was their call.
1:38pm • #7
649,576 Points 111 Featured Posts Outside Blog Called Shot Master

Chris I went through this last year with a buyer and seller (around April 2011).  It was only just a few months ago that the buyer caved in and decided to split the earnest money with the seller, which was pretty generous on the sellers part since the buyer had lied to get out of the contract in order to purchase another house. The buyer only agreed to splitting the earnest money after she called the real estate commission.  I guess after she found out that she could fight it at her own expense, she changed her tune.

I'm featuring this in Bananatude.

bananatude
1:52pm • #8
236,745 Points 8 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sounds like a bunch of big egos are involved and neither one wants to let go... what a waste of time and energy, Chris Ann.
4:41pm • #9
427,526 Points 19 Featured Posts Outside Blog Called Shot Master

Chris Ann, I think this is very good advice, Nothing would be worse that being right, but ending up broke.
7:25pm • #10
OCT
24

When I was a practicing attorney, I would ALWAYS tell people that you lose by fighting lawsuits like this.  You will lose so much time, energy, and money that it has to really be worth it to you personally/emotionally to go forward with the suit.  

Yes the other person was wrong and is a bad person, but do you want their bad behavior to control your life over the next year or do you want to move on?
8:30am • #11
1,543,507 Points 116 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Dick: You're right.  It is our client's call whether to pursue these things or not.  It is frustrating though, to sit on the sidelines and watch a slow moving train wreck.

Charita:  The Sellers did offer to split the deposit with the Buyer, but it was his insistence on how right he was, that has drawn this out.  The Sellers can't walk away because they want to prove to him how wrong he is.

Peggy:  It is definitely not a sign of weakness to decide there are more important things in life than chasing a deadbeat buyer in court.

 
9:10am • #12
1,543,507 Points 116 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Kathy:  The real question is how much money is it worth to get the other side to be proven wrong?

Lynn:  Exactly my thoughts.  There is no doubt the Buyer is wrong here as his loan didn't fund, but at some point, you have to choose to move on and stop being pulled into the muck of their nastiness.
9:12am • #13


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Chris Ann Cleland, Associate Broker, Northern VA (Long & Foster REALTORS®, Gainesville, VA) Ambassador_large

Chris Ann Cleland, Associate Broker, Northern VA

Bristow, VA

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Long & Foster REALTORS®, Gainesville, VA

Address: 7526 Limestone Drive, Gainesville, VA, 20155

Office Phone: (703) 402-0037

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