Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

Seller Stops Operating and Violates the Contract

5 May 2026 · 1 min

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0:44

A seller stops answering calls and lets occupancy collapse after a real estate deal goes under contract. The buyer discovers a clause allowing them to walk away and get their deposit back when the seller breaches by ceasing operations.

Chapters

I want you to imagine something. You've spent months finding a deal. You went through the education, you underwrote it, you got the bank on board, you signed the contract, you put your earnest money down, and then while you're under contract, the seller stops operating. He just stops. Phone goes to voicemail. New tenants can't rent. Existing tenants move out. The facility you thought was 75% occupied is now sitting at 40%. And And you haven't even closed yet. You have a clause in your contract that says if the seller violates his obligation to keep running the facility, you can walk away, full deposit back, no harm, no foul. That is the moment my guests today were standing in.