I am the plaintiff in Real Estate law suit pending in NJ.
This case involves breach of contract.
Buyer/Seller signed Standard NJ RE Contract, Attorney review completed.
Purchase price $900,000
Buyer (Defendant) promised to apply for a mortgage of $600,000
And put down total deposit of $300,000
Buyer was rejected by mortgage bank for amount of $984,000 not agreed amount
of $600,000. Buyer did not apply for $600,000 and was not rejected for $600,000
Buyer claims Bank determined he had insufficient assets to put down $300,000 deposit that he agreed to put down.
1. Is buyer in breach of contract since he promised to apply for $600,000 and put down $300,000 and he did neither?
2.Can I send written questions to Defendant out of state bank?
It is necessary to review the contract documents at issue. However, it sounds as if the buyer is in breach. If this matter is currently in suit, your attorney has certain tools to get the documents you request. If you are represented, you should direct these questions to your attorney. If you are not represented, get an attorney.
DISCLAIMER: Please be advised that this post is not intended to constitute legal advice and is for informational purposes only. This posting in on way creates an attorney client relationship. You should contact an attorney to protect your interests.
It sounds like the buyer's in breach but I'd need to review your written contract.
Wth this much money at stake, and with yuor contract likely providing for attorney's fees to the prevailing party in any dispute (and perhaps requiring mediation prior to filing suit?), you need to ask your own real estate litigator how to proceed.
Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.
I assume you are seeking specific performance of your contract of sale, perhaps before Judge Cavanaugh, the presiding judge of general equity matters in Monmouth County. You should have an attorney represent you as I am uncertain if you indeed have grounds for specific performance based upon the mortgage contingency clause in the contract.
You state that the bank has said the buyer has insufficient assets to put down a deposit or cash of $300,000. If this is the case, it does not matter whether the buyer applied for a $600,000 loan or a $900,000+ loan. The loan would have been denied in either case,. If the lender will not give a loan of 100+%, which not unusual, and this was the basis for the denial, then you might have a better case.
As my colleague has indicated, you cannot send a third party, especially since financial matters are subject to all kinds of privacy laws - you get notice of them all the time - demands for production of the buyer's loan application. You would need to demand the documents from the buyer/defendant. If not produced, you would then have your attorney move to have the defendant produce them, if critical to your case, and then seek sanctions, which may be a default judgment and payment of your attorney legal fees.
As an aside, I have found that these matters take time, a lot of aggravation and significant legal fees.You may be better just declaring the contract void and seeking a more qualified buyer.
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PS: I can give you the names of two different firms located in Freehold capable of handling this matter.
The foregoing is not intended to be legal advice upon which you may rely as I have not been retained for this purpose.
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