Legal Question in Real Estate Law in New Jersey

Backing out of the deal that has been delayed over 1.5 mths

I entered into into a contract to purchase a property which would close in the third week of August. A little after the attorney review period I found out that the property was still in the process of being subdivided. Although I was not told about the subdivision they did not lie about the dimensions I would be buying. The subdivision was delayed over 1.5 mths (approved in the second week of Oct), and I no longer wish to purchase the property (I had to rent an apt). The seller is saying that I am in default and holding my deposit until damages can be accessed. Do they have a right to hold my money?


Asked on 10/19/02, 8:28 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Backing out of the deal that has been delayed over 1.5 mths

This can go either way. If the subdivision approval was not mentioned in your contract as a contingency to which you agreed, you might have been able to cancel the contract for not containing a known contingency. On the other hand, by learning of it, and not cancelling, you may have waived your right to terminate the contract. Plus, when the closing date passed, you did not make time of the essence, which might also have given you the right to terminate for non-compliance. It appears you may also have waived this tight as well. Finally, by not making time of the essence, you may also have waived your right to recover your damages for the interim rent you had to incur. It would appear you waived all of your rights, for termination and for damages. However, I would contest the case - claiming the fraud in not telling you about the subdivision and the possible delay in closing. Also claim your rent damages. My belief is that you may get some relief, but probably be compelled to close, based upon your sitting idle.

Read more
Answered on 10/20/02, 1:26 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in New Jersey