Legal Question in Real Estate Law in New Jersey

Buyer Deposit - can I keep it?

I had a buyer for my 1 bed co-op. Buyers attorney's first fax to me stated he disapproved contract because of unachievable mortgage contingency date. I responded that I agree it was not achievable but we should go ahead. I didn't sign a new contract. Buyer waived home inspection.

4-5 weeks past unachievable mortgage contingency date, buyer attorney said that his client was declaring the contract null & void ''due to clients inability to get a timely mortgage commitment''. By timely he refers to the original mortgage commitment date in the contract.

Buyer was not 'refused' a mortgage, it was just taking a bit of time. I'm told that buyer lost his job. I believe that buyer simply changed his mind.

Do I have a right to keep any/part of his deposit? He put down 1000 + 10%.


Asked on 8/21/03, 7:11 am

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

Re: Buyer Deposit - can I keep it?

Hard to answer without seeing all documents. If no extension date was mentioned in your reponse, just an agreement concurring in the impossibility of meeting the original date, it would appear that if the date has come and gone with no commitment, the buyer can properly cancel for failure to timely meet the contingency date, if done following the contract language. Was the notice of cancellation timely? If you could fax me the contract language and the e-mail or other written data on the language of the comments, I could give you a better response. Fax number is 973-377-8167.

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Answered on 8/21/03, 3:45 pm


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