Can we sue for breach of contract and hold the buyer liable in any fashion?
It is too late for your situation, but your first mistake was to take such a low earnest-money deposit. If I am representing a seller, I want the seller to give my real estate agent (or the settlement agent) a minimum of 5 percent of the purchase price. You want the buyer to put up enough money so that he or she will think twice about walking away. I will assume from your question that the buyer is in default. In many states (including Maryland), when a buyer enters into a contract to buy a condominium or a house in a homeowners association, the buyer has a fixed number of days in which to review the association’s legal documents and back out of the contract. You have three alternatives: — You can keep the $5,000 earnest money deposit, although your sales contract may require you to split it with the real estate agents. — You can sue your buyer for damages. If the house subsequently sells for $10,000 less than the original contract price, this would be the amount of your damages, plu