Legal Question in Real Estate Law in Maryland

Break Contract on Condo Purchase

Last December I signed a contract to purchase a condo in a building that is being converted from apartment to condos. I put down an earnest money deposit. Since then, the building owners have defaulted on their loans. One of the financers is trying to take ownership of the building, however that has been blocked by the county's right of first refusal.

I can't afford to keep paying my rent on a month-month basis, but no one can provide any dates regarding when delivery can be expected (if at all).

After months of poor communication and numerous bumps, I just want out of the contract. My contract does say that they have 2 years from signing date to deliver the condo.

Is there any other way that I can get out of this contract? I feel that my contract is with the original building owners and not the new one, so I should be able to consider the contract void and receive my deposit back.

Any help would be appreciated. Thank you.


Asked on 7/30/07, 5:54 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Break Contract on Condo Purchase

Re-read your contract. It probably contains a clause allowing the developer to assign its interest to another party. So you would still be bound under the contract after a new developer takes over. Unfortunately, with such a long delivery period, it ties up your options. It may not work, but you could try writing to the new developer once they officially take over and ask them to rescind your contract in view of all the circumstances. You have nothing to lose.

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Answered on 7/31/07, 2:06 pm


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