Legal Question in Real Estate Law in New Jersey
breaking a sales contract
My ex-fiance and I have jointly entered a sales contract for a new development that will be completed in Dec 2001. Since we have broken up and no longer have any intention to purchase this house, we would like to break the contract and get our 10% down payment back. According to the sales contract, the builder can impose up to 10% of the purchase price as penalty if a buyer is in default. My concern is what is the probability that can we get our entire downpayment back under the circumstances?
2 Answers from Attorneys
Re: breaking a sales contract
From your description of this situation, it
does not look as though you have any legal
justification for breaking the contract.
Unless you are unable to obtain financing
because you will not be living together, and
cannot be approved by a mortgage company,
you are stuck and should be looking for
someone to take over your contract. But
you never know what a bank will do when askied
especially if you double your housing expense
with the need for two households.
Re: breaking a sales contract
Unfortuntately, you didn't specify which state you were trying to buy the property in, that is New York or New Jersey.
If the property is in New York, the liquidated damages portion of the contract entitles the seller to the downpayment if you break the contract.
You could always go throught with the purchase, and turn around and sell the property. You won't see your money for a while, but you won't lose the 10% either.
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