Legal Question in Real Estate Law in New York

Obligation of buyer to close

I have a contract for sale of a home in Westchester County, NY which specifically states, ''This is an all cash transaction, the Purchaser represents that he/she has sufficient funds to complete this transaction. This transaction is not contingent upon the sale of the Purchaser's current residence or their ability to obtain financing'' Our closing atty is holding 10% of the purchase price in escrow. The buyer is stalling to close on the excuse they need to change lenders. What is our recourse and what are our rights to obtain an immediate closing?

Thanks


Asked on 11/06/02, 5:12 pm

2 Answers from Attorneys
David Slater David P. Slater, Esq.

Re: Obligation of buyer to close

The contract should state that time is of the essence. If not, buyer has a reasonable time to close. If a reasonable time has expired

your attorney could send a letter claiming the deposit as liquidated damages and the contract void. Good luck and contact me in Florida if you need help.

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Answered on 11/06/02, 9:06 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Obligation of buyer to close

It appears the Buyer misrepresented how he was purchasing the property. I suggest you immediately send a time of the essence notice, making the closing mandatory. If they cannot make the scheduled closing, you can assess the Buyer for additional costs you may have, such as delayed mortgage payoff, taxes, etc. If the Buyer refuses to close, you may terminate the contract, relist the house and get any loss on resale reimbursed from the deposit. Check with your attorney about this.

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Answered on 11/07/02, 12:45 pm


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