I received an email this week from someone who is not a client of ours but is now in a terrible situation regarding a business they were looking to purchase. They made an awful tactical error in their offer which is now coming back to haunt them. Specifically, their offer did not detail a contingency about the lease transfer where the business operates and it is not a business one can easily relocate. Furthermore, the location itself is a significant driver of the company’s revenues.
The landlord steadfastly refused to assign the lease which in turn is causing the buyer to want to walk from the deal. However, the seller is refusing to return the buyer’s deposit specifically because they are not required to do so under the offer terms.
There is a very important lesson here.
Unfortunately, in the case discussed above, the buyer will likely lose their entire deposit. Hopefully, that will not be the case but they (the buyer), really does not have any grounds to substantiate a return of the money. Sadly,
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