We all know why the buyers provide a good faith deposit ( Earnest Money) in escrow. It's to provide the seller with some security and in Ca., to be held as liquidated damages in the event of a Buyer breach of contract.
Well what happens when the Seller decides to back out at the last moment and breaches their contract? What recourse would the Buyers have in this situation for possible damages ?
What damages you say ? How about Buyers giving notice on their long term lease and paying a early cancellation penalty for it. Suppose they rented a truck for the move , bought furniture , made deposits on other services, and were forced into temporary housing?
Could a seller be liable for damages? MMMM .... Really the only recourse for a buyer in this situation would seemingly be to arbitrate or sue the seller for the actual damages. Do ya think buyers want to do that? No they want to move into a new home.
I wonder if it has ever occurred to anyone to have a deposit contribution from the seller to show the buyer their commitment to sell, and provide some security to the buyer for a seller breach. It seems to me that if ya wanna dance you gotta bring something to the table too.
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