Legal Question in Real Estate Law in New Jersey

Contract Cancellation

I am trying to purchase a new construction home from a builder in the Jersey City area. A RE company introduced me to the property and after months of dilberations a contract was drawn with the price of 485k and a deposit of 1000, in February of this year. The builder got into a dispute with the city over the land, and when it was resolved he increased the price to 520k. I confronted my agent and demanded something be done about it, but since I had no written contract they claimed there wasn't anything that could be done. Attached to the property, I requested minor comestic alertations, which were included in the new contract, and agreed to pay for them in addition to the price of 520k. The seller, agent and myself, signed the contract at the seller's office. Today 8/19/04, my agent received a fax from the seller's attorney stating he was canceling the contract because it was still in attorney review. The agent claims that attorney review process lasts until 75% of the house is built,is that so? When I confronted the real estate broker, he informed me someone contacted him in regards to the property, he stated it was sold, and she went directly to the seller and offered a higher price. Can the seller legally engage in this?


Asked on 8/19/04, 2:22 pm

3 Answers from Attorneys
Bruce Gudin Ehrlich, Petriello, Gudin & Plaza Esqs.

Re: Contract Cancellation

We would need to see a copy of the signed contract in order to fully respond to your inquiry. Can you fax it to 973-596-1781 attn: B. Gudin

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Answered on 8/19/04, 2:34 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Contract Cancellation

Traditionally, the attorney review ends after 3 days from contract signing, unless extended by agreement or the terms of the contract. Not having read the contract, I cannot tell if some provisions are contained that expand the traditional time period allowed. You may have a claim for damages if the contract is breached by the Seller, and possibly a claim for specific performance. I suggest you contact a local attorney, familiar with real estate matters, to get an opinion based upon your actual contract. If you would like me to review the contract and provide a better answer, FAX me a copy at 973-377-8167.

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Answered on 8/19/04, 2:43 pm

Re: Contract Cancellation

Whoa! There are too many facts that are unknown here to give any opinion, and your posting is confusing. First you say that, "after months of dilberations a contract was drawn with the price of 485k and a deposit of 1000, in February of this year." THEN, you say there was no contract. Which is correct? Did you pay a deposit? Who is holding the deposit?

The first thing you need to do is to have an attorney review any and all correspondence and contract(s). Generally, a contractor can not unilaterally change a contract price. Does the contract allow for escallation for any reason? You can not cancel a contract because you have a better offer. Who drafted the contract? If it was deafted by an attorney, there IS NO ATTORNEY REVIEW PERIOD. That only applies to a contract prepared by a non-attorney. What does the contract say about a review period? Anything?

As I said, to many questions must be answered before anyone can give you an answer - SORRY! You should have had an attorney from the beginning, because a house is too big an investment to go buy one without someone to help protect you. No one likes having to pay an atty, but in the long run, it almost always pays off to do ti the right way (ther realtor doesn't care about you, and does NOT really work for you).

If you want, you can call or fax me if you do not have an atty you trust, at 732-525-8200 / fax 732-525-8120.

Good luck!

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Answered on 8/19/04, 7:05 pm


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