Legal Question in Real Estate Law in New York

Struggling With Two Mortgages

We went into contract to sell our house in October 2006. The closing date was set for January 2007. The buyer began to procrasinate along with our lawyer and we still have not closed. We got rid of our old lawyer sent back the deposit from the buyer. The buyer has rejected the check and states that he could bar us from selling to anyone else. We have already found a new buyer who is willing to close in two weeks regardless of the situation. Is that legal? If we do sell to the new buyer without the old buyer knowing, what are the ramifications? We are running out of time and money. Please convey our options. Thank you.


Asked on 3/13/07, 1:58 am

1 Answer from Attorneys
Frank Pintauro Donohue & Partners, PC

Re: Struggling With Two Mortgages

Why hasn't the buyer closed? Can't get mortgage? That is important. Also, you have to look to what the contract provides. For example, if the contract states that the closing date is "time of the essence" then if the buyer does not close on that date, he/she is in default. If the buyer can't get the mortgage and its his/her fault then the buyer is in default. If the buyer has not complied with contract, the contract can be voided. You must notify the buyer via his attorney in writing that he is in default and the basis for same and that you are cancelling the contract. Note that courts generally do not force the sale of a property. Rather, the court tries to put the parties in the same position they were in before the contract was executed.

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Answered on 3/13/07, 9:50 am


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