Legal Question in Real Estate Law in New Jersey
Seller refuses to remit deposit
Buyer entered into a contract to purchase a home in July with a closing date on or before a specific date in Sept. Within the 1st 2 weeks of August, an inspection of the home was conducted and the issues the buyer wanted resolved were sent on to the seller. The seller agreed to correct the issues such as underground oil tank, asbestos in the crawl space, faulty electrical panel, etc. with certified contractors and certificates of proof. After numerous inquiries into the status of the completion of issues, the seller never provided any finite answers or proof of completion. In Oct., the seller was informed that due to the failure to provide any update on the issues, the closing date passing without any agreed upon extention, and buyer unable to qualify for a mortgage due to net worth reduction due to market conditions and no being able to qualify under current acceptable programs. The seller has refused to acknowledge the contract as null and void or canceled and will not remit the deposit stating the buyer is in breach of contract. Can someone please advise what course of action should be taken in a situation like this? How can the seller repeatidly refuse to remit the deposit? Thank you for your help!
3 Answers from Attorneys
Re: Seller refuses to remit deposit
Buyer should sue if the seller breached the contract. Buyer will have to show that buyer was ready, willing, and able to close at the time settlement was to take place and that seller breached. Buyer's subsequent inablity to settle is of little consequence if seller's prior breach can be proved.`
See also: http://info.corbettlaw.net/lawguru.htm
Re: Seller refuses to remit deposit
Buyer should sue if the seller breached the contract. Buyer will have to show that buyer was ready, willing, and able to close at the time settlement was to take place and that seller breached. Buyer's subsequent inablity to settle is of little consequence if seller's prior breach can be proved.`
See also: http://info.corbettlaw.net/lawguru.htm
Re: Seller refuses to remit deposit
Buyer's recourse would be to file suit to recover the deposit. Buyer would have to prove that Seller defaulted under the contract terms, and that Buyer was ready, willing, and able to close on the closing date specified in the contract.
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