My sale of contract included renovations in the rider. It also said the alteration agreement needed to be submitted to the managing company within 7 days of signing the contract. I have received mortgage commitment and board approval over the last 8 weeks. However, I now find the alteration agreement was not submitted by the seller per the contract. He backed out of the sale today when confronted.... [more]
My sale of contract included renovations in the rider. It also said the alteration agreement needed to be submitted to the managing company within 7 days of signing the contract.
I have received mortgage commitment and board approval over the last 8 weeks. However, I now find the alteration agreement was not submitted by the seller per the contract. He backed out of the sale today when confronted. He claims family emergency and not being able to renovate & close right now. He says he will return my deposit. I also incurred $3k in legal and application fees.
What would you do in my situation? Ask for the $3k back for breach of contract along with the deposit? I have put in much time and effort and also ended my current lease, not to mention the stress.
Curious how others' would react....yes, I can sue, but it is more money and time.
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Response by Guywithcat
almost 13 years ago
Posts: 329
Member since: Apr 2011
small claims is no money and one evening and can be done for up to $5k and you can file online
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Response by Guywithcat
almost 13 years ago
Posts: 329
Member since: Apr 2011
this is a classic small claims situation
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Response by zoso480
almost 13 years ago
Posts: 14
Member since: Jun 2010
How badly do you want the property? If you are really interested, believe you got a good etc, I would pursue specific performance or any other remedy available to you.
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Response by mym
almost 13 years ago
Posts: 188
Member since: Jun 2009
Market has become much more aggressive in the last 2 months- maybe he just thinks that he can sell it for more.
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Response by cherrywood
almost 13 years ago
Posts: 273
Member since: Feb 2008
I agree with zoso. If you want the apartment, I'd pursue specific performance as well, assuming you have a fully executed contract.
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Response by zoso480
almost 13 years ago
Posts: 14
Member since: Jun 2010
Exactly . . .I smell market is heated up and seller wants higher price.
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Response by 300_mercer
almost 13 years ago
Posts: 10577
Member since: Feb 2007
Roons, market is hot. Negotiate deduction in price for the Reno plus some trouble and close. That is if you really like the place.
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Response by rb345
almost 13 years ago
Posts: 1273
Member since: Jun 2009
Roons:
1. his family emergency most likely is "seller's remorse"
2. seller seems to be unequivocally breaching
3. advise the Coop managing agent that you intend to hold seller to the contract
4. under Uniform Commercial Code section 8-401(a), which applies to coop apartments
because coops are personal property under New York law, a stock transfer agent is
required to issue a new stock certificate to the person "entitled" to it
5. the effect of a UCC 804(a) letter is the same as a lis pendens, which can no longer
be filed on coops, because it puts the managing agent -- transfer agent of the Coop's
stock - on actual notice of your claim
6. a UCC 8-401(a) letter also requires the managing agent to disclose your claim to any
new buyer under New York's "special facts" rule, e.g., Swersky v. Dreyer & Traub, 219
AD2d 321, 326-328? (1st Dep't. 1993), which, if it does, subordinates the new buyer's
claim to the apartment to yours
7. such disclosure will cause most if not all new buyers to pass on buying the apartment
8. caveat: review what I have written here with whatever lawyer you consult or hire
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Response by Roons
almost 13 years ago
Posts: 12
Member since: Sep 2012
You guys were right. I have not even collected the deposit check and cashed it yet, and the seller has already re-listed the apartment for a higher price right here on Streeteasy. The first open house is tomorrow, and he just backed out of the contract on Thursday.
Meanwhile, I am left with 3k of legal and application fees to fight over in Small Claims court and in limbo with my current living situation because he had told me we could close at end of March.
I will look into rb345's advice with my lawyer, but I am so just MAD! I signed this contract in Dec, and have put almost 4 months into this deal to end up with nothing but stress and headache.
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Response by kharby2
almost 13 years ago
Posts: 279
Member since: Oct 2009
You have lots of options, but you really need a good attorney to help you. Get one who specializes in real estate, jettison your current attorney if she or he is fluxmoxed.
An anonymous board is no place to be seeking advice on something like this, you have no idea if anyone knows what they're talking about.
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Response by greensdale
almost 13 years ago
Posts: 3804
Member since: Sep 2012
>An anonymous board is no place to be seeking advice on something like this, you have no idea if anyone knows what they're talking about.
That's for sure. With Perry Mason, the crazy sky is falling lady in apartment 23, the guy who walks around with the cat on his head, the guy with OCD who numbers everything, the idiot with his too big car up in C0lumbia C0unty and his buddy the Oliver People's wearing rental broker running the scam to get an illegal immigrant her papers, there aren't too many reliable voices here.
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Response by zoso480
almost 13 years ago
Posts: 14
Member since: Jun 2010
I would presume everybody knows its wise and ideal to consult their attorneys. That said, this is just a sounding board for some preliminary advice/options, and should be treated like such.
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Response by apt23
almost 13 years ago
Posts: 2041
Member since: Jul 2009
I agree -- I would hold this seller's feet to the fire. In a rising market like this one, you have missed opportunity and now face rising prices, not to mention an exhaustive search and rising interest rates. Those are all opportunity costs that cannot be addressed in small claims court. Invest in a good attorney. Negotiate a lower price and do the renovations yourself but fight for the apartment -- you obviously like it.
small claims is no money and one evening and can be done for up to $5k and you can file online
this is a classic small claims situation
How badly do you want the property? If you are really interested, believe you got a good etc, I would pursue specific performance or any other remedy available to you.
Market has become much more aggressive in the last 2 months- maybe he just thinks that he can sell it for more.
I agree with zoso. If you want the apartment, I'd pursue specific performance as well, assuming you have a fully executed contract.
Exactly . . .I smell market is heated up and seller wants higher price.
Roons, market is hot. Negotiate deduction in price for the Reno plus some trouble and close. That is if you really like the place.
Roons:
1. his family emergency most likely is "seller's remorse"
2. seller seems to be unequivocally breaching
3. advise the Coop managing agent that you intend to hold seller to the contract
4. under Uniform Commercial Code section 8-401(a), which applies to coop apartments
because coops are personal property under New York law, a stock transfer agent is
required to issue a new stock certificate to the person "entitled" to it
5. the effect of a UCC 804(a) letter is the same as a lis pendens, which can no longer
be filed on coops, because it puts the managing agent -- transfer agent of the Coop's
stock - on actual notice of your claim
6. a UCC 8-401(a) letter also requires the managing agent to disclose your claim to any
new buyer under New York's "special facts" rule, e.g., Swersky v. Dreyer & Traub, 219
AD2d 321, 326-328? (1st Dep't. 1993), which, if it does, subordinates the new buyer's
claim to the apartment to yours
7. such disclosure will cause most if not all new buyers to pass on buying the apartment
8. caveat: review what I have written here with whatever lawyer you consult or hire
You guys were right. I have not even collected the deposit check and cashed it yet, and the seller has already re-listed the apartment for a higher price right here on Streeteasy. The first open house is tomorrow, and he just backed out of the contract on Thursday.
Meanwhile, I am left with 3k of legal and application fees to fight over in Small Claims court and in limbo with my current living situation because he had told me we could close at end of March.
I will look into rb345's advice with my lawyer, but I am so just MAD! I signed this contract in Dec, and have put almost 4 months into this deal to end up with nothing but stress and headache.
You have lots of options, but you really need a good attorney to help you. Get one who specializes in real estate, jettison your current attorney if she or he is fluxmoxed.
An anonymous board is no place to be seeking advice on something like this, you have no idea if anyone knows what they're talking about.
>An anonymous board is no place to be seeking advice on something like this, you have no idea if anyone knows what they're talking about.
That's for sure. With Perry Mason, the crazy sky is falling lady in apartment 23, the guy who walks around with the cat on his head, the guy with OCD who numbers everything, the idiot with his too big car up in C0lumbia C0unty and his buddy the Oliver People's wearing rental broker running the scam to get an illegal immigrant her papers, there aren't too many reliable voices here.
I would presume everybody knows its wise and ideal to consult their attorneys. That said, this is just a sounding board for some preliminary advice/options, and should be treated like such.
I agree -- I would hold this seller's feet to the fire. In a rising market like this one, you have missed opportunity and now face rising prices, not to mention an exhaustive search and rising interest rates. Those are all opportunity costs that cannot be addressed in small claims court. Invest in a good attorney. Negotiate a lower price and do the renovations yourself but fight for the apartment -- you obviously like it.