Walking away from deposit-possible ramifications?

Perhaps your attorney is telling you that it does happen because he let you sign a bad contract. The usual form residential real estate purchase agreement says that the sellers remedy and only remedy is to keep the deposit. This usually inures to the benefit of the seller because s/he could keep the deposit even if the apartment resold for the same or a higher price. Look at the contract. The seller should have no other recourse.

kiz10014,

Are you considering walking away from your deposit or know someone who plans on doing so?

I think most contract-holders in a new construction are considering this as an option.
Sport, all contracts that I reviewed for the developments (new construction) I was considering (in late 2007) did not limit sellers remedy only to deposit, I was aware of this and yes using the ol' retrospectoscope this was not that bright, but it is what it is so I was wondering if anyone out there had experience in a contract holders liability extending beyond the deposit.

Since there are probably ways for you to get out of your contract anyway, they will gladly take your money and be done with it. that's my opinion.

I vaguely recall it being statutory (or similar) in NYS that your liability is limited to deposit. Anyone? In any event, your atty should know that off the bat if his specialty in RE.

There are some old FHA or other fedderal agency regulations which give biyers of new condos a right to rescond and get their donw payments back. There's a lot of litigation involving those regulations now.

The Real Deal had an artcilae about that 1-2 months ago. also, if you call the Real Estate finance
Bureau of the Atty General's office at 120 Broadway, 23rd floor, which regulates new condo offerings,
they migth be abkle to help you as they have many facy sheets for public distribution.

Phone # is 212-416-1623, if memory serves me correctly.

Developers will often have a "specific performance" clause in their sales contract - to make the purchaser go through with the purchase or be liable for more than the deposit alone. Your attorney should advise you on this one.