Realty Law Digest
Scott E. Mollen, a partner at Herrick, Feinstein, discusses 'Sanjana v. King,' where the sellers were entitled to keep the deposit where the buyers failed to obtain a mortgage commitment and timely cancel the contract; '230 E. 48th St. LLC v. Campisi,' where the court found that by renting her stabilized apartment through Airbnb, the tenant “commercialized her apartment” and treated it as a de facto hotel; and 'E. Midtown Plaza Hous. Co. v. Gamble,' where the landlord established entitlement to summary judgment of possession of the subject apartment based on illegal use of the premises.
September 18, 2018 at 02:50 PM
13 minute read
Contracts—Lender's Conditional Letter Was Not a “Mortgage Commitment”—Buyers Failed to obtain Final Mortgage Commitment, Failed to Ask for Extension and Failed to Timely Cancel Contract—Sellers Entitled to Keep Deposit
This case involved a failed purchase/sale real estate transaction and a dispute over the down payment. Plaintiff buyers moved for summary judgment and the defendant sellers cross-moved for summary judgment dismissing the complaint. The court granted the sellers' cross-motion to dismiss the complaint.
The buyers sought to purchase a condominium owned by the defendants. The parties had entered into a contract of sale (contract) on Jan. 26, 2017. The buyers had provided a $10,000 downpayment. The contract contained a mortgage contingency clause which provided that:
The obligations of Purchaser…are conditioned upon issuance on or before thirty (30) days from the date hereof (the “Commitment Date”) of a written commitment from an Institutional Lender pursuant to which such Institutional Lender agrees to make a loan other than a VA, FHA or other governmentally insured loan to Purchaser, at Purchaser's sole cost and expense, of $800,000 or such lesser sum as Purchaser shall be willing to accept….
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250