The plaintiffs brought a motion for summary judgment after the defendant buyer repudiated a residential real estate agreement within hours of acceptance and failed to pay the $40,000 deposit.
The plaintiffs subsequently sold the property to another buyer for $12,473 less than the defendant's agreed price.
The court conducted a comprehensive review of the law on deposits and relief from forfeiture, concluding that the Stockloser test applies to real estate deposits.
The court found that the plaintiffs were entitled to the full $40,000 deposit, as the defendant's breach was not accompanied by unconscionability that would justify relief from forfeiture, despite the deposit exceeding the actual damages.
