Legal Question in Real Estate Law in New York

Default on co-op purchase

I am selling a co-op apartment to an individual. He received a loan commitment from a bank 2 months ago and received Co-op Board approval 1 month ago. Closing was scheduled for today. His lawyer cancelled closing this morning because he said that the bank wanted the Co-op to have a $1000000 liability insurance against employee theft and the Co-op only had policy for $250000. The loan commitment which they had for 2 months stated the $1000000 requirement but the purchaser and his lawyer did not inform the bank until yesterday that the Co-op had a $250000 policy. My lawyer informed the purchaser's lawyer that they are in default because they should have been aware of the requirements of the loan commitment and they should have asked the co-op how much coverage they have. Is the purchaser in default and am I entitled to the deposit after being delayed needlessly?


Asked on 1/15/03, 4:11 pm

1 Answer from Attorneys
David Slater David P. Slater, Esq.

Re: Default on co-op purchase

yes.

Read more
Answered on 1/15/03, 9:32 pm


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