Legal Question in Real Estate Law in New Jersey

2nd Home

We have a 2nd home. We decided to sell it in 2004. our neighbor asked us to hold off and allow him time to get a mortgage on it. He would get tenants and keep the home occupied,collect rent and pay mortgage each month. Each year since he has assured us he was getting the loan and had paying tenants in the house.We found out that the neighbor had also allowed the tenants to remove two walls in the house lowering the property value. Now 2008 we have decided to sell the house. Before listing it we decided to offer it to the neighbor at a lower price. He declined the offer and is now threatening to sue us for $20,000(he saws 1/2 of his ''out of pocket'' expenses) because we are selling the house out from under him. He wants to purchase it for $70,000 not our asking price of $92,000. What can we do?


Asked on 3/13/08, 6:37 pm

3 Answers from Attorneys
Michael Berman Law Offices of Michael A. Berman

Re: 2nd Home

You have no obligation to him as he has no contract for sale with you.

Mike

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Answered on 3/14/08, 9:48 am
Terry Zuckerman Pollack & Zuckerman

Re: 2nd Home

First, what are his out of pocket expenses? Does he have proof? Did he keep receipts?

Second, if he is maintaining that he has some form of contract with you, he has breached his end of the contract by failing to obtain a mortgage.

Third, the way you went about this "transaction" was rather sloppy and passive. Apparently, you allowed this gentlemen to put tenants in and make unauthorized changes to the house for YEARS. Didn't you ask him why hadnt he got a mortgage yet? Did you ask for paperwork? You are continuing your error of dealing with this gentleman by offering him the house.

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Answered on 3/14/08, 9:51 am
John Corbett Corbett Law Firm LLC

Re: 2nd Home

There are multiple issues here. I think that it would be best for you to treat this from the standpoint of where you would like to finish rather than as a collection of related problems. Broken dowh that way, it breaks up into getting the best deal for the house while factoring in all the problems that your neighbor has generated. To translate that into action, it will be necessary for you lawyer to review in detail what has gone on with the neighbor and the tenants. So, find a lawyer who can help you sort all this out.

My firm handles matters of this type. If I can be of further help to you, call or email.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 3/14/08, 10:04 am


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