Legal Question in Real Estate Law in New Jersey

Missed Closing Date as Buyer

My wife and I got to the closing table on our closing date which was 6/27/07. We received a mortgage from a broker that was not to have PMI, which it did. We walked away from the closing and are getting a new mortgage now. The bank gave a guarantee closing date of 7/27/07. Should we expect to have to pay any penalties? There are no penalties stipulated in the contract. It states the closing will be on or before 6/27/07, but mentions no penalties if the closing goes beyond that date. The seller wants us to pay his mortgage up front now. Apparently, his attorney is going to send a ''Time of Essence'' letter stipulating ten days. If we go beyond that date, what can he do?


Asked on 7/02/07, 6:29 pm

3 Answers from Attorneys
Robert Davies The Davies Law Firm, P.A.

Re: Missed Closing Date as Buyer

If you have an attorney and he is not answering these questions for you, fire him. Get another real estate attorney.

If you do not have an attorney assisting you, get one today. Your opponent has one helping him.

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Answered on 7/02/07, 8:05 pm
Bernard J. Berkowitz Berkowitz & Raiken

Re: Missed Closing Date as Buyer

If you miss the contract closing date, the other side can send of a "time of the essence" letter to close in a reasonable time (ususally ten days). If you do not close by that date, you are responsible for the loss incurred by the other party including mortgage interest (not principle). They may also cancel the contract and sue you for the damages. Your attorney should be able to tell you this. If not, call my office.

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Answered on 7/03/07, 9:55 am
Walter LeVine Walter D. LeVine, Esq.

Re: Missed Closing Date as Buyer

I cocur with Bernard, that once the set, even if approximate, closing date has passed, either side can send a "Time of the Essence" notice fixing a set closing date. If that date is not met, even through no fault of anyone (like your mortgage problem), damages can be claimed, which include additional interest charges on the Seller's mortgage.

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Answered on 7/03/07, 10:37 am


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