What to do if I’m purchasing a business from a seller and am in the middle of escrow but he has informed me that he has changed his mind and is looking to cancel on the sale?

What to do if I’m purchasing a business from a seller and am in the middle of escrow but he has informed me that he has changed his mind and is looking to cancel on the sale?

I’ve already deposited $10,000 into escrow and spent around $1500 for other licensing and business fees. There is a “liquidated damages” contingency that states in the case that the seller defaults he must provide the $10,000 less the escrow fees (estimated $1000-$2000). I’m reluctant to get an attorney because I feel the attorney fees would just add to the sum of money I am currently looking to lose. The escrow has stated they will not be responsible for anything that happens in this case.

Asked on August 1, 2015 under Business Law, California

Answers:

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