A purchase contract in New York includes a clause stating 'Seller warrants that all systems and appliances will be in working order at closing.' Two days before closing, the furnace breaks down and requires $2,500 in repairs. The seller refuses to fix it, claiming normal wear and tear. How should this situation be resolved?
Correct Answer
B) The seller must repair the furnace to comply with the warranty clause in the contract
The warranty clause creates a contractual obligation that the seller must fulfill at closing. Since the contract specifically warrants that systems will be in working order at closing, the seller is obligated to repair the furnace regardless of when the breakdown occurred.
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In New York, what is the primary reason that most residential real estate transactions involve attorney participation?
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A New York buyer signs a purchase contract with a financing contingency requiring a 'conventional loan at prevailing market rates.' Market rates increase by 1.5% between contract signing and the loan application deadline. The buyer obtains a loan commitment at the higher current market rate but claims the contingency is not satisfied because rates increased. Which statement is correct?