Counsel Barry Landsman Quoted by Newsday in Article About Residential Sales That Fail to Close
The November 7, 2008 edition of Newsday featured an article in the real estate section entitled “Sellers: How to keep a sale from falling through.” The article discusses those situations where a sale goes to contract but never makes it to closing, and provides options for sellers to consider.
Pryor Cashman counsel Barry Landsman, who was interviewed by Newsday for the article, said that one option the seller has where a buyer refuses to close is to keep the down payment. Landsman noted that most contracts are contingent upon a buyer getting a mortgage and that if someone cannot get a mortgage and cannot close, the seller is required by most standard contracts to return the down payment. However, if the purchasers find another home they prefer, are just too scared to go ahead with the deal because of concerns about the economy or back out for any other non-mortgage-related reason, the seller is legally entitled to keep the down payment.
According to Landsman, the good thing about this option is that the seller has the money in his or her pocket to use until another buyer comes along. The bad news, of course, is that the seller is back to square one.
To read the article, please click here.
