Legal Question in Real Estate Law in New York

We signed a contract with the seller January with a closing date of March 31st. It is now March 20th and the sellers decided that they cannot make the closing date. They asked if we can close on the 31st but allow them to stay until the end of June & pay the mortgage interest and tax (so they their kids can finish school)

My question is, can we still back out and recovery our downpayment? (currently in escrow) My attorney says that the sellers has to be the one who breaks the contract in order to for us to get the downpayment back but she says we have to wait until April 30th since if March 31st passes the sellers have 30 days to decide to close before they can be considered "at fault" Can the sellers be considered "at fault" if they cannot close during the specified date (march 31st on the contract?)


Asked on 3/20/12, 9:14 pm

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

My question is, can we still back out and recovery our downpayment? (currently in escrow) My attorney says that the sellers has to be the one who breaks the contract in order to for us to get the downpayment back but she says we have to wait until April 30th since if March 31st passes the sellers have 30 days to decide to close before they can be considered "at fault" Can the sellers be considered "at fault" if they cannot close during the specified date (march 31st on the contract?)

Your attorney is substantially correct. Under the contract the closing date is "on or about". If you want a firm date, your attorney will have to send a "time of the essence letter." Generally, a time of the essence letter gives a firm date 30 days after the on or about closing date. Therefore, you attorney is correct that you will have to wait until April 30th - at the earliest.

Mike.

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Answered on 3/21/12, 5:50 am


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