Legal Question in Real Estate Law in New York
licquidating damages
We signed a undated contract on April 23rd. Mr. G (seller&attorney) agreed not to date the contract in order to grant additional time to close on a refinance loan.
On May 22, 2003, Mr. G faxed a letter saying we only had 14 days left to secure financing.
We received a conditional commitment and counter offer from the bank on June 25, 2003 for the purchase loan. We also received the appraisal report from the bank on June 25, 2003.
On June 26, 2003 my attorney faxed both the underwriting decision and appraisal report to Mr. G. That same day, Mr. G faxed back a letter to my attorney stating that a closing date was set for July 3, 2003 at his office and further indicating that if we were unable to close that day, he will hold us in default and retain our contract down payment as liquidating damages.
As of today, my $35,000.00 have not been returned. My feeling is Mr. G knew that if his buddies were not used in the transaction there is no way the deal would go through.
What sould I do?
How do I know if my attorney was negligent?
1 Answer from Attorneys
Re: licquidating damages
You don't provide enough facts. Did the contract provide that time was of the essense? Why did you not close on July 3? Did the contract state "on or about July 3?
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