Legal Question in Real Estate Law in New Jersey

compensation for losses in delayed closing

What recourse or compensation do you have if you enter into a contact for sale of your home. The buyer, asked for a quick closing and for you to move out in a hurry. You agree, and after you move out get an apartment, incurring a lot of extra expense. I now have a mortage and a rental apartment i am paying for this month. Now the buying keeps pushing back the closing date. Do you, have the right to ask for compensation for the time and money lost? Thanks


Asked on 5/18/03, 7:14 pm

1 Answer from Attorneys
Miriam Jacobson Retired from practice of law

Re: compensation for losses in delayed closing

Your rights are governed by the terms in your contract with the buyer.

You should consult a real estate lawyer in your area to review your agreement or contract, and possibly to send the buyer a "time is of the essence" notice, if that is not already in the contract, to fix a firm date for settlement.

You have not mentioned what the buyer's reasons are for the delay. If the buyer is unable to complete settlement, depending again on what your contract says, you may be able to seek damages from the buyer. This would be useful only if the buyer has assets.

If the buyer will not complete settlement, you are probably best off looking for another buyer, but first you have to deal with ending your contract with the current buyer. You need legal advice to do this without giving up rights you may have.

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Answered on 5/19/03, 10:01 am


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