In a contract, deposits are required to show the sincerity and strength of the buyer's intent to purchase as well as to potentially provide liquidated damages to sellers in case of default. Sellers sometimes eye these funds as money in their pocket and assume that the deposit will just be handed over to them if the buyer defaults or cancels the contract. In reality, there are many legal ways for a buyer to cancel a contract, so odds are slim to see an actual default. Also, a release form has to be signed by both seller AND buyer. This release allows the money to be withdrawn from the escrow account and distributed appropriately. The chances of the buyer just signing over thousands of dollars without an argument are slight. If both parties won't agree to sign, the process could end up in mediation or court. To avoid this situation, it's always best to find compromises that help resolve disputes as amicably as possible.
Give me a call if you are looking for an experienced REALTOR that will help your sale move forward and avoid costly litigation. 603-526-4116, www.DonnaForest.com, firstname.lastname@example.org
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