If you read my last blog about the buyer who breached the contract but got their deposit back because the contract included an unenforceable non-refundable deposit clause, let me give you an update. Some people are commenting on the bad buyer. My focus in on the agents and they were the cause of the problem. The agent wrote a contract that was unenforceable. If they didn't know the significance of writing an offer with no Liq. Damages, shame on them for not advising their buyer see an attorney. It was a $14 Million house. Do you think a $14 million buyer knows at least one attorney. When you are playing at this level, you better know what you are doing.
And, the listing agent didn't protect their seller either by not understanding the ramifications or advising the seller to seek counsel. At least call your company attorney. Assuming the agents got 2% each, that is $250K+ to each side? What is really sick and the article doesn't address it is that the contract included an attorney fee clause. So, not only did the seller lose the deposit, they had to pay the buyer's attorney fees as the prevailing party. Most lawsuits I deal in cost $100K or so on each side. My guess, based on the players, would be $200-300K on each side. I am on one case as an expert witness now with a dispute over a $17,000 sf house. Attorney fees are over $1 million on each side. OUCH!