Legal Question in Real Estate Law in New Jersey

Re: Owner backing out of the deal

Did you ever actually receive the attorney letter? Once the three-day period passes without a letter from an attorney, which must be sent via Certified Mail, return receipt requested, if you have never received such an attorney letter, the contract is not canceled.

You should write your own letter to the seller, sending it by regular mail AND by Certified Mail, return receipt requested, saying the the contract is still in effect and that you are holding the seller to her obligations.

You should carefully review the contract to see what kind of remedies are available in the event of Seller Default. If there are Realtors involved, you should also send copies of notices to them.

Inform the Seller of the steps you have taken to go through with your purchase, and say that you will seek specific performance of the contract (requiring her to go through with the sale) in court, plus your damages in having to move twice, find temporary housing, etc.

From a practical standpoint, going through court takes a long time and is expensive. You will need legal counsel to handle this for you. However, it also permits you to file a "lis pendens", which is a notice that appears in the real estate records, telling the world that you have a claim against the property. It effectively prevents the seller from refinancing or selling the property to someone else.

If you have limited resources, you should find out if your county has a lawyer's referral service or a pro-bono or reduced fee panel of lawyers who can assist you in this.