Legal Question in Real Estate Law in New Jersey
back out of purchase?
I was to purchase a home on Nov. 30th which was the contracted closing date. The seller was unable to close because an exboyfriend filed suit stating he was entitled to profits from the sale of the home. He submitted this suit 2 hours before scheduled closing which then put the closing on hold due to new question of title. The seller's lawyer then said we could close within a couple of days because he was able to get the title company to agree to insure the property and hold sellers profits in escrow until the issue is settled. I also found out that the ex boyfriend was harrassing and stalking the seller, has had weapons confiscated and restaining orders against him by seller and has caused property damage at the property. I have not closed because I do not feel comfortable with this situation nor do I feel safe at the property in question. I no longer want to purchase this house.
Does the fact that the closing date was to be on or before nov. 30th per the contract give me a way out?
I do not want to own a piece of property that is the subject of someone else's law suit. Do I have a way out?
thank you, Christina
3 Answers from Attorneys
Re: back out of purchase?
Your description is very troubling. No attorney can give you advice over the internet which will solve this type of complex problem. I understand your very serious concerns, and I suggest you find and hire an attorney who handles a lot of real estate and a lot of court lawsuits (litigation). You should find a lawyer located reasonably near you.
I would be pleased to assist you; please contact me if you would like to discuss further.
Re: back out of purchase?
I assume you have an attorney. Talk with him or her. It sounds that if the title company will insure over the lawsuit that you might well be in breach if you do not close. Check the contract paragraph dealing with quality of title. Again, check with your attorney.
Re: back out of purchase?
I agree with Drew. You may have a problem getting out of the contract, since they have gotten the title company to insure good title. Unless the closing date originally set was made "time of the essence" by you, it can be rescheduled. You close, get good title and the closing funds are held in escrow until the litigation is resolved. Be sure the funds are held by an approved title company and, if necessary, get the boyfriend to sign the Deed to you. This is an unusual problem, but not the first time something like this has occurred. The escrow will resolve the problem.
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