Jennifer contracts to purchase a house in Albany from Steven for $400,000. The contract includes a clause requiring Jennifer to obtain homeowner's insurance before closing. Three days before closing, Jennifer's insurance application is denied due to the property's proximity to a flood zone. Steven refuses to extend the closing or modify the contract. Under New York law, what is the most likely result?
Correct Answer
D) Jennifer must find alternative insurance or be in breach
The insurance requirement is typically a condition that the buyer must satisfy. Jennifer's inability to obtain standard homeowner's insurance does not automatically discharge the contract. She must either find alternative insurance (such as flood insurance through NFIP) or be in breach of the contract condition.
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Under New York's Statute of Frauds, which signature requirement must be met for a real estate purchase contract to be enforceable?
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Carlos enters into a contract to purchase a condominium in Brooklyn. The contract states that Carlos will receive 'insurable title' rather than 'marketable title.' At closing, the title company discovers a minor lien that would prevent them from issuing a standard title insurance policy. Under New York law, can Carlos refuse to close?