Posted by Shari on 6/05/04

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I need advice, please. My husband and I started to buy a
restuarant/building/property/liquor license for $325,000 in
January 2004. After filling out the paperwork, paying for
the inspection/appraisal/LCC/lawyer/accountant, etc. We've
paid out over $8000 plus put $4000 down as a good faith
deposit. After going to five different banks/lenders, no
one would approve the $325,000, only $245,000--the
restaurant is currently showing a loss and as far as we
could find out does not have a value. The current owners
refused to adjust their purchase price, so we had to back
out due to the $80,000 difference. They are refusing to
return the $4000 good faith deposit back to us and are
insisting we take it to arbitration, but want us to pay for
it. What are our legal rights? Can we take them to small
claims and force them to pay for the legal fees? Why
should we pay the arbitrator when they haven't met their
end of the purchase agreement (which is now expired--the
money is sitting in escrow with the realtor, who will not
get in the middle). Before the contract expired on 5/29/04,
they advertised the sale of the restuarant at $300,000. Can
they legally do that? We need help and can't afford to
spend any more money on this whole situation--does anyone
have any advice?

Re: Comm. Real Estate Purchase-backing out!, 6/22/04, by Michael.

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