Legal Question in Real Estate Law in Massachusetts

Went thru the whole process of buying a fannie mae house. They gave us a day and time for the signing for closing. I took money from 401 k for down payment. On the day of closing they put a delay on it and then pulled it from the sale.They never had a title for it. I know and will pay the tax for the 401k but because they never had a house to sell can I get the penalty reduced or taken away?


Asked on 2/28/12, 4:45 pm

1 Answer from Attorneys
Craig J. Tiedemann Kajko, Weisman & Colasanti, LLP

The answer likely depends on things like (1) the terms of your agreement with them to purchase (if any), and whether or not their decision not to proceed at this juncture breached that agreement, (2) whether the defect in title was discoverable by you in advance (such as through a title search or examination of other public records, and (3) similar concerns that require more facts. At the end of the day, even if you have a cause of action, your damages (taxes and penalty for early 401(k) withdrawal) may not be enough to justify initiation of formal claims, given the relatively small amount probably recoverable even if successful. However, you should consult with counsel to discuss this thoroughly and assess what rights you may have in these circumstances.

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Answered on 2/28/12, 5:14 pm


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