Legal Question in Real Estate Law in New York
I am selling an apartment in NYC, I am in contract with a qualified buyer, 2 weeks before the closing date he lost his job and wants to terminate our contract. Does he forfeit the deposit because he is backing out so late after receiving his loan committment, legally do I have a right to keep the deposit or do I have to give it back to the buyer?
2 Answers from Attorneys
Legally, if he received a firm loan committment and satisfied all conditions in the contract, he is bound to purchase the property. If he is unable to purchase the property, then he forfeits his downpayment.
Mike.
If he has received a mortgage commitment the answer probably is yes, however, although we have substantial experience handling these types of cases, we would need some more information (likely a review of the contract) before making a complete and proper determination. You are welcome to contact us for a free consultation.
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