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Updated almost 5 years ago on . Most recent reply

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555
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David Smith
  • Rental Property Investor
  • NJ/PA
148
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555
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Can seller charge no refundable deposit ?

David Smith
  • Rental Property Investor
  • NJ/PA
Posted

If buyer backs out in a legal contract—-  Either with or without contingencies. 

My lawyer said the court will not support such non refundable amount no matter what.  

H

Most Popular Reply

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Percy N.
  • Developer
  • Philadelphia, PA
900
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2,067
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Percy N.
  • Developer
  • Philadelphia, PA
Replied

What size property is this?

For larger properties (100+ units), it is common these days to have some amount "hard" (non-refundable) and no such thing as a "sellers disclosure". The buyer has to do their Due Diligence.

Having said that, well written Commercial RE contracts have a clause about non-performance on the seller's part.

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