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What should I do about a home buyer that put a down payment on property, but now will neither close nor withdraw the offer?

Saratoga Springs, NY |

This happened 3 month ago. Repeated calls by my attorney to his attorney are going unanswered.

Attorney Answers 3

Posted

Assuming your side is ready to close and depending on the wording of the contract your attorneyshould send the buyers attorney what is called a "time of the essence letter" This is a very formal letter that contains certain required language. Essentially the letter advises the buyer that the seller is "ready willing and able to close" sets what is called "a law date" for the closing and warns that the buyers failure to appear on that date for closing will result in the buyer being held in default under the contract of sale and loss of the down payment deposit. How the the letter is srved on the buyers attorney is usually laid out in the contract. Ask your attorney if has considered sending a time of essence letter and if not why. Good luck.

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Posted

Have your attorney send a time of the essence letter scheduling the date time and place of closing and stating that failure to close will result in default and loss of the downpayment.

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What does the contract say? Generally the contract states that you may keep the downpayment as liquidated damages in the event of the default. You need to rely on your attorney to advise you if the buyer is in default under the contract.

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