Assuming they can get a mortgage and you can provide clear title, you have a couple of options. You can sue to force them to buy they house according to the terms of the contract. In over 20 years of selling real estate I've never seen this happen. The other option is you can keep their down payment as liquidated damages. This is what I have seen most often.
This is not legal advice, but what my experience has shown. The best advice I can give is talk with your attorney.
Licensed Associate Broker
Douglas Elliman Real Estate - New York's #1 Broker
You should refer back to your attorney, you will usually have options.
All the best,
Exit Realty Search
3928 E. Tremont ave
Bronx, NY 10465
Of course the best advice on this matter is the attorney representing you on the transaction and what type of clauses were added to the contract. Almost every contract has a mortgage contingency so unless the buyer didn't get a mortgage approval, then the downpayment is at risk and may be potentially yours. Again, consult with your attorney and you'll know all your rights.
From my understanding you are legally bound and your down payment will be at risk, unless the contract has a mortgagee clause and you receive a denial letter from the bank.
The only person who can answer this question would be your Attorney. There are many factors involved that make each transaction unique, not the least of which is the contract of sale and its specific terms.
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
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