Karen enters into a contract to purchase a cooperative apartment in Manhattan. The contract is contingent upon board approval. The co-op board rejects Karen's application without stating reasons. Under New York law, what is the effect on the contract?
Correct Answer
A) The contract is terminated and Karen's deposit should be returned
When a co-op purchase contract includes a board approval contingency and the board rejects the application, the contingency is not satisfied through no fault of either party. The contract terminates and the buyer's deposit should be returned, as the condition precedent was not met.
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Previous Question
Thomas contracts to sell his Westchester County home to Maria for $650,000. Before closing, Thomas discovers the property has significantly increased in value and refuses to complete the sale. Maria wants to force the sale. Under New York law, what remedy is Maria most likely to obtain?
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Under New York Real Property Law, all of the following would make a real estate purchase contract voidable EXCEPT: