Legal Question in Real Estate Law in New York

Re: Closing Rights

First things first: if a "time of the essence" letter is going out, it sure sounds like you have gotten "lawyered up." You should be asking your lawyer about this. Generally speaking, the seller is in breach of contract as of Monday morning, and you can cancel the contract if that is what you want; but if the market has risen, that's exactly what the seller wants (well, that and keep your downpayment, too). My own practice in this situation is to play very, very hard ball. Your mileage may vary. Good luck.

Second, once the May 1 deadline passes without a closing, the buyer is entitled to get back the down payment. This is because refund of money is a legal remedy, and time is always of the essence at law. When the seller's lawyer refuses, you can bring a turnover proceeding against him (yes, against the lawyer) which is always a good way of raising the temperature of the bath water.

What you have as of June 1, if no closing has occurred, is the right to file a notice of pendency and sue for specific performance. Or you could forego the specific performance lawsuit and sue for damages. Damages would apply if your contract price was below-market: you damages would be the difference between the contract price and the market price. You're not likely to have damages at this time. You can also sue to impress a vendee's lien in the amount of title examination charges and, sometimes, other charges as well....and your lawyer should have told you this already.

Re: Closing Rights

Not much option except to back out of the deal or to go to court ot sue them for "specific perforamce to have them sell to you".

Odd thing for a time of the essence letter. Why not ask your lawyer?

Good Luck

RRG