Legal Question in Real Estate Law in New York
Breech of Purchase Offer
Recently I made a purchase offer on a house. The real estate agent was hesitant about showing me the house during the day but after I signed the contract she took me to see it. I saw the roof was in horrible shape after the sellers told me it was new also there were several other costly repairs needed. I contacted the real estate agent and told her my concerns and asked what my options were. She took it upon herself to tell the sellers I was backing out which I wasn't. So seven days after I signed the contract I received a letter stating the sellers were keeping my down payment and were going to sue for legal fees and the difference if the house were to sell for less than what I contracted for. Meanwhile I tried to get approved for the mortgage and was denied. What are my options and can I get out of being sued for legal fees and for the difference if the house sells for less?
2 Answers from Attorneys
Re: Breech of Purchase Offer
This is general information only and should not be construed as legal advice, nor is there an attorney client relationship.
Most contracts contain a mortgage contingency clause. It states that if you are not approved for the mortgage amount specified in the clause, the contract may be cancelled and your down payment returned.
In order to advise you on this matter properly, I would need to see the contract you signed and any other correspondance.
Re: Breech of Purchase Offer
Dear Reader:
In examining this response, please note that we are not entering into an attorney/client relationship, that this is to be taken as informative, and not as legal advice, that it is always best to speak to a lawyer in your area and/or in the area where the transaction and/or events occurred, and that my answer is necessarily limited by the fact that I have not seen the documentation or had an opportunity to go over the matters with you in detail.
If you signed a contract, then you probably have your own lawyer; talk to him about the situation. This is what he or she does for a living, and it is wise to spend the money there before relying on anonymous, free, partial advice delivered over the Internet.
If you don't have a lawyer, the details are too sketchy to provide firm advice. As a general proposition, it may be premature for the sellers to consider you in breach, especially if you are not near the closing date. You can also ask them and their agressive lawyer why the leaks were not disclosed to you, as they must ultimately end up on the mandatory state disclosure forms which will eventually be signed under oath.
Next time, deal with a scrupulous real estate agent and have the house professionally inspected by a licensed engineer, who will be able to find problems like that.
As I mentioned before, this is something that you will want to take up with a lawyer of your own selection, either in your state or area or in a place where some of the pertinent events occurred.
Rod Kovel Attorney at Law 516-312-9900
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