A purchase contract in Syracuse includes a contingency requiring the seller to provide a clear title report within 15 days. On day 12, the title company discovers an old lien that will take 30 days to clear. The seller immediately begins the lien removal process. What is the buyer's position under New York law?
Correct Answer
C) The buyer may terminate the contract and recover their deposit
When a title contingency deadline is not met, the buyer has the right to terminate the contract and recover their earnest money deposit. While the seller is attempting to cure the defect, the buyer is not obligated to wait beyond the specified contingency period unless they agree to an extension.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
More Contracts Ny Real Property Law Questions
A buyer in New York breaches a contract to purchase a $600,000 home and forfeits a $30,000 earnest money deposit. The seller incurs $8,000 in additional carrying costs and $4,000 in remarketing expenses before selling to another buyer for $585,000. What is the seller's total recoverable damages?
A New York buyer exercises their right to cancel a purchase contract within the attorney review period. The seller demands to keep the earnest money as compensation for taking the property off the market. What is the legal outcome?
A seller in New York breaches a contract for a $750,000 home. The buyer must purchase a comparable property for $785,000 and incurs $3,200 in additional costs (inspection, appraisal, attorney fees). The buyer also loses $1,800 in non-refundable application fees from their original lender. What are the buyer's total recoverable damages?
Tom is buying a condominium in Syracuse and reviewing the purchase contract. What type of title insurance should Tom expect to receive?
Jennifer owns a condominium unit in Albany and wants to rent it out. What approval is required under New York condominium law?
- → 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?
- → A New York purchase contract specifies that the buyer will provide 'good faith deposit' but does not specify the amount. What is the legal effect of this provision?
- → In New York real estate transactions, what is the primary role of attorneys?
- → Who typically conducts the closing in a New York residential real estate transaction?
- → In a typical New York residential real estate transaction, at what stage do attorneys commonly become involved?
- → What typically happens during the attorney review period in a New York real estate contract?
- → In New York, can a real estate broker prepare a deed for a property transfer?
- → A real estate agent in New York is asked by their client to recommend a specific attorney for the transaction. What is the most appropriate way for the agent to handle this request?
- → A New York real estate agent prepares a purchase offer using a standard form contract. After the seller accepts the offer, what typically happens next regarding attorney involvement?
- → What is the primary difference between the role of a real estate agent and an attorney in a New York real estate transaction?
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