Collecting The Deposit As Liquidated Damages

How does the seller collect the deposit as liquidated damages when the buyer breaches the contract?  How does the buyer recover the deposit?

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We represent sellers.  In most residential purchase contracts, the seller has the right to collect the buyer’s deposit as liquidated damages when the buyer fails to perform and breaches the contract.  However collecting the deposit is not automatic if the buyer refuses to consent.  We represent sellers in collecting the deposit by making forceful written demands including attorney fees and penalties, followed by mediation and arbitration if necessary.

We represent buyers.  When the buyer breaches the contract by failing to perform, the buyer may have a right to recover some or all of their deposit.  We represent buyers in recovering their deposit by enforcing their rights under Civil Code 1675, through negotiation, mediation and arbitration if necessary.

 

If you are a seller trying to collect the deposit, or a buyer trying to recovery the deposit, contact us for an appointment. Call Sandra at 408-500-5489 or email sandra@strombotnelaw.com