Susan's purchase contract for a home in Syracuse includes a financing contingency requiring her to obtain a mortgage commitment within 30 days. On day 25, her lender requests additional documentation. Susan submits the documents on day 28 but doesn't receive the commitment until day 35. Under New York law, what is the likely outcome?
Correct Answer
C) Susan may be excused if she acted in good faith and the delay was reasonable
New York courts generally require buyers to act in good faith to satisfy financing contingencies. If Susan promptly applied for financing, cooperated with the lender, and the delay was due to lender processing rather than her failure to act, she may be excused from strict compliance with the 30-day deadline.
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James signs a purchase contract for a house in Buffalo on Monday. On Wednesday, he changes his mind and wants to cancel. The contract contains no contingencies or right of rescission. Under New York law, what are James's options?
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