Legal Question in Real Estate Law in New Jersey

Here is my situation:

1. I received a pre-approval for a mortgage requiring me to place 10% down instead of 20% on the mortgage-

2. I met with the realtor with the good faith of deposit of 1,000 and a copy of my pre-approval

3. I went to make the offer and they told me, I had to get pre-approved by their preferred lender, but they would present my offer to the seller anyway

4. The realtor called me the next day and said that owner will NOT consider my offer unless , I have the 20% down payment

Is this legal? I have no problem getting a mortgage, I just don't have 20% cash to place down, even with PMI, I can afford the monthly payments no problem. I also offered the seller more money than he sold a similar unit last month. Is this legal to do? The property is a condo.


Asked on 7/01/11, 10:33 am

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

there are a couple of wrong things happening here. the realtor is steering you to their lender. bad. they want 20% down, fine, but is the seller demanding this or just the realtor?

Give me a call, make an appointment to come see me, and let's get moving on this for you. No charge for the telephone call and no charge for the first office visit.

Robert Davies, Esq. 201-820-3460

The Davies Law Firm, P.A.

45 Essex Street, Suite 3 West

Hackensack New Jersey 07601

Phone: 201-820-3459

Fax: 201-820-3461

Email: [email protected]

Website: AttorneyRobertDavies.com

Please keep in mind that my response is just a general comment on your question, and not legal advice. Your question and any response does NOT create an attorney-client relationship between you and this law firm. The exact details of your situation and things that you have not mentioned in your question can completely change the response I gave. You can not rely upon what I have written, because I do not have all of the information that I need to advise you, I only have the very small amount of information that you put into your question. To get legal advice that you can rely on and use, please contact me directly.

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Answered on 7/01/11, 10:59 am
Walter LeVine Walter D. LeVine, Esq.

I agree with Bob that this seems irregular and while not illegal, understand that a Seller can be arbitrary in setting terms (such as a deposit of 20%). More information might be needed for a better response, This might be a disguised way of being discriminatory, as well as someone might be getting a kickback from a lender (both being illegal). This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.

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Answered on 7/02/11, 9:50 am


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