Advice Needed

General Real Estate Investing
1

Hey gang, need your advice on a property that was supposed to close in NY

We were under contract, financing had been taken care of, approval was done with lender, clear to close was issued

This was a 3 unit, N/O/O property

Was waiting for proof of the 3rd unit to be occupied, which was contingent in the purch contract. After waiting forever to get proof, our lock expired on our mortgage, which we expired at a cost of .125%

Recently after tired of the games, we decided not to go through with this deal. We NEVER signed any closing docs.

The realtor said that the buyers attorney (it is an attorney state) is going to sue us!!! FOR WHAT, I am thinking??

Is there any basis for them to sue, need your advice and opinion

Even the contract says “Transer of title shall take place at the country clerks office or at the offices of the buyers lender on or before July 15th 2007” today is the 20th of Aug, so at worst case I would imagine that would let me out right? They made mention of something called a “Time of the Essence” which was never filed

Please give me your input, is there basis for them to sue or are they way out of line since no closing docs were signed and we were out of contract with no extensions?

Thanks all!!!

2

can they sue? sure, they can, but it seems doubtful they will win anything based upon what you have said.

while local laws will prevail here, one key element is did they ever issue a Notice to Perform or similar document sent you by certified mail, etc .When someone is in default on a contract, you need to give them “official” notice of that default.

also, many contingenies are removed in writing if not done so by some physical act. if they can’t prove they provided some evidence, leases or other stuff, then you still have contigency pending.

what you need to do however is release them from the contract. while it may have expired you need send them a written statement of cancellation of the contract.

finally, it might be worth it to speak with an atty to clarify what NY laws and RE practices are in this matter

3

I agree, send them a release of contract…less said the better.

My “guess” is they will not sue…Can they Y

4

Confused. You say the buyer’s attorney is going to sue. Sue who, for what?

Were you the buyer or the seller?

Why was the 3rd unit not rented? What was the specific language in the contract concerning it?

“the realtor?” Who’s Realtor?

Raj