Legal Question in Real Estate Law in New York

On 1 April, a buyer made an offer for my home which I accepted, it took them two weeks to return the contracts that my attorney drew up. Earnest money was put in escrow once, inspection, title, etc took place. We were scheduled to close on 15 May. Heard nothing on May 15 and nothing for three more weeks, finally, right before the end of the 30 day closing period, the buyers advised that the seller who was purchasing their home (they were closing in early may), backed out of their deal.

I lost another offer because I accepted this deal. I moved everything out of my home by May 4 as they insisted they would want to close on the 15th of May. When my attorney advised that I would be keeping their earnest monies based on our contract. The buyer's attorney offered to compensate me. That was more than a week ago. I think that these buyers are stringing me along and I am losing the best part of the season in which to show and sell my home. How do I keep their earnest monies to cover the costs during the period that my home has been off the market and the other offer that I had to decline. My attorney says I cant keep the monies unless they agree. What will it cost me to go to court?


Asked on 6/17/16, 11:25 am

2 Answers from Attorneys
Martin Posner Law Office of Martin L. Posner

Could you call me at 914 760 6059 if you wish to discuss. There are very few legitimate reasons your purchaser would be permitted to breach the contract and not lose the contract deposit. I need some additional info

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Answered on 6/17/16, 12:09 pm
Walter LeVine Walter D. LeVine, Esq.

What does contract provide, if anything on this? Usually, Seller can only keep the actual damages. Require Buyer to agree to actual damages and release house to be resold. Keep earnest money until your rescheduled closing. If earnest money is sufficient to compensate you for all damages, return excess. If escrow is insufficient, close with new Buyer and sue old Buyer for loss not covered.

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Answered on 6/17/16, 12:26 pm


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