What is a buyer's recourse if the seller refuses to close?
Question Details: The buyer has signed all the docs, including escrow on Monday and then it funds on Tuesday and they signed off on all the contingencies. However, they refuse to close because we allowed them to rent the house for 2 weeks during the escrow period and they heard a noice in the outdoor hose bib. We, the sellers, had it looked at at our own expense and its normal and up to code. That's still not good enough and they're calling they're own plumber and still refuse to close.
The seller's recourse is two-fold:
1) Keep the earnest money/deposit; they forfeit that if they breach the sale contract by refusing to close.
2) If the sellers can show that they have lost or spent more money than the deposit (example: they end up having to "carry" and pay for the house for an extra six or seven months before a new buyer purchases it, and during that time spend more on mortgage, taxes, etc. than the deposit), they could possibly sue the buyers for the surplus or excess of their losses over the deposit. (Assuming, that is, that there is nothing in the contract barring that, or limiting their recovery or recourse to the deposit.)