Legal Question in Real Estate Law in Massachusetts
mortgage contingency
I, as seller had a p&s on a 5 unit 3 res, 2 storefronts)for $550,000 with a mortgage contingency of a morgage up to $412,500. I was notified before the required date that the buey could not obtain a committment. When I received their mortgage application iI saw that they han actually appied for a mortgage of $440,000. Did they breach the contract and forfeit their deposit. Can I also show that they were in the real estate business and try for triple damages?
2 Answers from Attorneys
Re: mortgage contingency
First, the keeping of the deposit probably says it is your sole remedy and should say "at law and equity."
Assuming you are looking for money damages and not trying to force the sale, you are limited to the deposit to begin with; then if the agreement says that your real estate agent is entitled to a commission other with the words (only on completion of sale) then you may not net even the deposit.
Can you try to keep it, yes. Will you ultimately be successful, when you factor in delays and costs, then you will not net as much as you think and you may not win. It will not be a slam dunk.
Re: mortgage contingency
I agree with Mr. Roth.
While some of the facts are not stated clearly, you have one more remedy. You can file an action to force the implementation of the P&S. This would require a review of the documents.
Apparently you are also thinking that you are being defrauded. This would also have to be examined by reviewing the facts.
Should you have any questions, please contact me.