Legal Question in Real Estate Law in New York
Buyer backs out
I had a contract closing date end of Aug 2008. The buyer delayed and delayed. Then we were told that his buyer defaulted and was scrambling to find a new buyer for his house of his girl friends house. finally we served him with time of essence and did a pseudo close that he did not show up to. The contract was not contingent upon him selling his house. Now I want to move on and put the house on the market again.
My lawyer tells me that I can't get his deposit unless I sue them. He said I would win, but it would be expensive and could tie me up for (2) years. So his advise is work out a deal. The ex buyer offered about 15% of the deposit.
Does this all sound correct and normal for a Long Island NY sale?
If so, then it seems to me these contracts are a joke. For losing almost (6) months I get a couple of thousand which does not even cover my expenses.
3 Answers from Attorneys
Re: Buyer backs out
I don't know anything about NY law, what the contract says or the total amount of damages you can recover. I do know that litigation is time consuming, expensive and generally not worth it unless you are talking really large amounts or if you can find an attorney to work with you on a contingency fee basis (which is not likely if the attorney does not think you will get a lot out of it).
- Jeff
Re: Buyer backs out
I have not seen the Contract so I do not know what it says about default. Generally, the Contract would provide that upon default by the Seller, the deposit would be returned. If this is the case, litigation would not be necessary. Who is holding the deposit; an attorney, title company, or the broker? Deamd for payment should directed to the holder. If you are forced to litigate, add damgaes for the loss of your money and what it could earn between the suit date and final payment.
Re: Buyer backs out
Assuming you are using a typical NY Contract for the purchase and sale of real estate, you are entitled to keep the deposit as damages for the buyer's breach of contract. Your attorney's advice to try to work out a deal is good advice as litigation is expensive and there are no guarantees. However, 15% is unreasonable and you should ask for significantly more. Keep the channels of communication open, litigation is expensive for everybody.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
