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A Seller Decides To Keep A Buyer’s Life Savings

Posted by SellThatHouse.net on June 22, 2009

A Seller Decides To Keep A Buyer’s Life Savings

Wednesday June 17, 2009
A Seller Decides To Keep A Buyer’s Life Savings is a sad blog post to say the least. There’s a video of the news story there as well. It’s set in the New York City area, and no mention is made of Realtors in the story, only attorneys.When a lender learns a coop building is on leased land, the loan is denied to the buyers. The seller keeps $26k+ in deposit as down payment, relying on the clause that allows them to do so because the buyers had a “commitment letter” from the lender. Read the post and watch the video for the whole story.

In my area, there is a condo project right in the heart of the tourist and old town district. Every time a unit is listed, I get inquiries from my web site because the units are priced low for that area. It’s because they’re on a land lease, and at this time, the lease runs out in 11 or so years. Every inquiry gets an email from me right away disclosing this fact. I have yet for a buyer to pursue one of these units after this email.

It’s too bad that this buyer couple didn’t have someone looking out for their interests. New York real estate transactions usually are handled by attorneys I’m told. It appears this couple weren’t using one early in the process. Whether it would have made a difference is open to question.

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One Response to “A Seller Decides To Keep A Buyer’s Life Savings”

  1. Three things of note from my expertise in California;

    1] we never have 10% of the purchase price at risk in any transaction – 1% initial deposit and increase typically no more than another 2% “upon receipt of loan commitment” or docs ready to be signed;

    2] where was the title search/report to state early on that the land was leased? where was the disclosure of the material fact of the leased land from the seller so buyer could object?

    3] buyer’s only hope is to not agree to release the deposit and force a court injunction hopefully holding up the sale of that particular co-op so seller can’t legally sell to anyone else and themselves release the deposit to buyer feeing seller to move on. Very poor reflection of humanity in this society either way.

    Commentary from David Thomas of SellThatHouse.net on “Seller Decides To Keep A Buyer’s Life Savings” http://abclocal.go.com/wabc/story?section=news/7_on_your_side&id=6868196

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