Legal Question in Real Estate Law in New York

Getting money back from escrow account

Hi,

I am facing a huge problem. About 3 months ago, I found a house that I liked and signed a contract to buy it. However, since it was a new house, it didn't receive a Certificate of Occupancy (C/O) for it from the gov't. So, my bank refused to sanction the loan without a C/O. My contract was due to expire on November 11.

But when Nov. 11 came by my lawyer said that there is a law in NY stating, if requested by the seller that I am obliged to give a 1 month extension. So, I told my lawyer to give an ''ultimatum'' to the sellers and thus he sent out a letter saying that his client (I) will not be interested in buying the house if they can't get the C/O document by December 11.

Now that Dec. 11 has passed and yesterday the seller contacted me stating they got the C/O on the 13th. I said I don't want the house but my lawyer contacted me soon afterwards saying I am still obliged to buy the else I will lose the money I have put in the escrow account - nearly $30K!

I have lost trust in my attorney as he acts like he is working for the seller and not me! I would like to know if there is any truth to this and would like to get a recommendation of another lawyer from you guys.

Thanks in advance!


Asked on 12/15/07, 10:02 am

1 Answer from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: Getting money back from escrow account

Your lawyer may, or may not, be correct.

Part of what you have stated is not completely accurate about the 30 day extension, and then there is the part about your bank not committing which leads to other issues.

Unfortunately, this requires much more in depth analysis than this forum provides.

If you would like a quick free phone consult, contact me at 845.878.2163 on business day afternoons.

Good luck

RRG

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Answered on 12/15/07, 1:06 pm


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