While rare, it is known to happen that buyers have walked away at closing and reneged on purchasing Windsor homes for sale. This can happen for a variety of reasons, all of them unfortunate as not only can the buyer lose their deposit and exposes themselves to a lawsuit, but also a seller needs to put their home back on the market.
But some situations just can’t be helped. Unforeseen circumstances can happen between when a home is sold and the closing date. The most common of which is when the buyer lied or was unclear about the financing or simply had cold feet. However, there are other reasons as well. Sometimes a buyer has found another home or there has been a sudden change in lifestyle, like a divorce or loss of job. As a real estate agent, it is never a pleasant experience to watch this happen, especially when there is no warning.
So what happens when a buyer walks away? What happens to the monies put in the trust account? That money stays in the trust account until “Mutual Release” papers are signed releasing the funds. This needs to be signed by both the buyer and seller as sell as both Brokerages.
Not only does this release the funds but also releases all sides from all liabilities, covenants, obligations, claims and sums of money arising out of the agreement. In other words, The Mutual Release exonerates all parties from future lawsuits.
However, usually when the buyer walks away and does not close the deal, the seller can incur sizable costs, fees and expenses. For instance, that seller may have also went and bought a house and now is carrying two Windsor homes for sale. Moreover, there are added costs in maintaining an empty house while having to look for another buyer. And there are stigmatizing factors now that the home has been on the market for an extended period of time.
Theses costs and damages can amount to tens of thousands of dollars that the buyer can potentially be liable for.
In all of these situations, it is best to get information on what steps to take from your real estate agent and a real estate lawyer.