Legal Question in Real Estate Law in New York
Buyers Backing out of contract 1 week prior to closing
What legal recourse do I have when buyer tries to back out of contract falsely claiming they were misled on the lot size of the property. We are less than a week from closing and the buyer claims we misled them on the size of the lot, which is completely not true, and they want to back out. We are also less than 2 weeks from closing on the property we are purchasing and need the proceeds from the sale of the aforementioned home to make our down payment. Would just like to reitterate that the claim that we misled this buyer on the size of the lot is completely bogus, I in fact myself pointed out the property line to the buyer.
2 Answers from Attorneys
Re: Buyers Backing out of contract 1 week prior to closing
While all the legal machinations are going on, and I believe that you are probably entitled to the down payment as liquidated damages, provided that is spelled out in your contract of sale, you should immediately apply for a "bridge" loan, so that you are not in default on your purchase contract.
Re: Buyers Backing out of contract 1 week prior to closing
Assuming you have a written Contract, that was drafted by an attorney, and duly executed by the parties,
You can: a) Cancel the Contract and keep the Deposit, as Liquidated damages; b) Petition the Court for "Specific Performance," of the Contract, since the Contract is for the sale and purchase of Real Property.
A "Specific Performance" Petition is an expedited Court action, that may allow the Court to Order and Compel a Party (Your Buyers) to Close on a Sale and Purchase, pursuant the Contract Terms.
Good luck,
Phroska L. McAlister,ESQ
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