Attempting to back out of a signed New York contract to purchase real estate could be harder than many people think. To protect themselves, buyers are best served doing research before entering into the agreement. New York courts aim to protect sellers. To put it simply: buyers beware!
Recently, New York’s highest court oversaw a matter in which a buyer backed out of a New York contract citing property drainage issues. The seller had resolved the issue and scheduled the closing, all in accordance with the terms of the contract. The buyer, however, had already bought a different house. It took approximately a year and a half for the sellers to find a new buyer, resulting in a significant loss in the sales proceeds. New York courts held in favor of the seller. In summary, the buyer should have:
- Performed due diligence relating to property damages issues prior to entering into the contract.
- Included provisions in the contract that allowed the buyer to back out if issues were discovered but not resolved by seller.
- Proven that he did not have the means to discover the drainage issue using ordinary intelligence.
If you are a party to a New York real estate contract that has been broken, you need a knowledgeable legal professional who can guide you through the complexities of this area of the law. To learn more, contact an experienced New York business litigation lawyer today. Call our office at (888) 497-3410 for a free consultation.