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NON-PERFORMANCE

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We signed a purchase agreement then decided to pull out. Now the owner wants to keep the $1000 earnist money and sue $5000 for non-performance. We cancelled the check. We sent him a contract termination agreement, he has not signed it. What is the seller entitled to?

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"We cancelled the check."

That's arguably a criminal act, please note.

"What is the seller entitled to? "

What does the contract say?

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I assume this is a home sale. Seller is entitled to the ernest money but nothing more. The ernest money is intended at the outset to be the full damages and this is agreed to in the purchase contract.

The fact that you cancelled the check means he may be due something for having to go after you for the ernest money, possibly legal fees. If you rectify the ernest money quickly, you may shield yourself from much further liability.

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Yes, it was for a house purchase. When we changed our mind, our real estate agent advised us to cancell the check. Now she's concerned she may get in trouble for this advice. It was three days from contract to termination. Is the seller entitled to the entire $1000 or his damages up to $1000? Thanks

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