The seller attorney has taken a $18,000 deposit and will not return it.
The co-op board approved my application. Chase bank had given me a commitment letter. However, the bank would not accept a flip tax of over 5%. This co-op board demanded a tax of 15%. I have not been able to find any bank that is willing to approve this rate. In addition, the fidelity bond of this co-op does not qualify for the bank’s standards.
At this point, the seller is indicating that I have breached my Contract of Sale by not being able to close by a certain date and they are now taking the deposit as liquidated damages.
Would I be able to demonstrate that the seller and co-op board presented me with a "no-win" situation in light of the exorbitantly high flip tax that no bank would accept?