The contract has been signed by both parties. I’ve already closed on my new home in the South Boston area and I was counting on this closing. I can’t afford to carry both properties any longer. What are my rights, and what are my options?
If the buyer defaults on the Purchase and Sale Agreement by not going through with the purchase (not because he has been denied a loan), then he faces losing his deposit to the Seller as the liquidated damages. The deposit could be tied up if either party refuses to sign a Release of Deposit in order to release the deposit to the appropriate party. The other option is to take the party to court to enforce the contract to purchase, but the outcome is not certain as in any litigation and the legal fees will be costly.