Legal Question in Real Estate Law in Massachusetts

Refunding a deposit on a purchase and sales agreement

I signed a P&S on October 21, 2005 (stating that time is of the essence) to close on November 4th. The condo that I'm purchasing was under construction and is 1 unit in a 3 family conversion. I subsequently signed an extension which rescheduled the closing to the 11/11 because the property was not ready. I have since learned that there is still a mortgage on the house and the purchase price of my unit could not cover the cost of the mortgage. Therefore, my bank will not grant me a mortgage until the title to the property is cleared. In order to remedy this the contractor is purchasing the lower unit. However, it was put on the market at a price much higher than it was appraised for and the contrator is having a difficult time getting a mort. I don't have a closing date for the condo and the closing date per the extension has lapsed with no second extension. This process began when I made an offer on Aug and after all this I would like to walk away, retrieve my deposit and buy another piece of property. I do not feel comfortable with the investment. I have the right to my deposit or will I potentially lose it? I was involved in the construction and have selected things such as wall color, etc. Will this hurt my case?


Asked on 11/20/05, 9:02 pm

1 Answer from Attorneys

Re: Refunding a deposit on a purchase and sales agreement

Without reading your agreement, it is difficult to give any definitive advice. However, if in most contracts there is a 30 day period for the Seller to clear his title but a notice has to be provided.

I would suggest you contact an attorney immediately. If there is no extension and there has been no notice (written) of an extension under the agreement, then you are entitled to get your money back and do with it as you please. However, you should have an attorney review your documents and assist you. You could ask for your money back but the Seller may just try to stall.

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Answered on 11/21/05, 11:55 am


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