Alan E. Farber, Farber & Company
The rapid escalation of prices in the real estate market have given Purchasers a false sense of security if they enter into an agreement of purchase and sale and change their mind and fail or refuse to complete the transaction. There is an ongoing obligation for the Vendor to mitigate their losses by reselling the property as soon as possible. In today’s market this almost always means the Vendor will resell at a profit thereby relieving the Purchaser of the necessity to pay damages to the Vendor for loss of profit. Many Purchasers, however, forget that they may still be responsible for the deposit which was placed in trust at the time of entering into the agreement.