Legal Question in Real Estate Law in New Jersey
Real Estate Deposits
Is it legal for a developer to take deposits for (unbuilt)townhouses, on property where the final sales agreement has not been (property sale has not been closed)signed by original owner and the builder does not legally own?
Asked on 2/11/04, 7:34 am
1 Answer from Attorneys
Walter LeVine
Walter D. LeVine, Esq.
Re: Real Estate Deposits
It is not illegal. It might not be wise to give a deposit until the contract is finalized, unless it is a minor amount as a binder for the contract and is refundable if the contract is disapproved. As such, it should be held in some secure escrow account, not placed in the hands of the developer directly.
Answered on 2/12/04, 4:08 pm
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