Legal Question in Real Estate Law in New York

Re: Real Estate Deposit

The circumstances under which you can cancel your contract and receive back your down payment are governed by the contract of sale that you and the seller executed. In NY, buyers often negotiate a 'mortgage contingency' which is a period of time during which you can cancel your contract if you are unable to obtain financing. The terms of the mortgage contingency can vary, so you would have to look at the contract and see whether it applies to your circumstances.

Additionally, even if you do not have a mortgage contingency, or if it doesn't apply here, there may be other contractual reasons where you would be able to cancel the contract and receive a return of your down payment. If you retained an attorney to represent you in the real estate transaction, you will likely want to discuss these options with him or her.