QUESTION
Do I have to pay for breaking breach of contract
Asked on Nov 13th, 2013 on Breach of Contract - California
More details to this question:
I am a buyer of the home this is in the escrow, I have everything ready, my loan and other things ready, today was my appointment for signing the notary and paperworks to close the escrow but something critical happened to me that was affected my private life and I had to cancel that, The seller is asking for 20000 $ to pay to him for breaking the breach contract, I wanted to know this is under the rule and legal to pay for breaking as I had critical situation and I was not aware of paying this loss. thank you,
1 ANSWER
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California Civil Code Section 1675 generally allows a residential seller to retain the buyer's deposit made on the transaction pursuant to a written contract providing for the same not exceeding 3% of the contract purchase price as liquidated damages in the event of the buyer's unexcused failure to perform the contract. This statute is pretty easy to read, so I suggest that you look it up and see if your contract and circumstances fall within its parameters.
DISCLAIMER: Please note that this answer does not create an attorney-client relationship, does not constitute legal advice and should not be relied upon, since each jurisdiction has different laws, each situation is fact specific, and it is impossible to evaluate a legal issue without a comprehensive consultation and review of all the facts and documents at issue.
Answered on Nov 13th, 2013 at 3:58 PM