Home Selling in New Jersey>Question Details

Odrasalj, Home Buyer in Millstone Township, NJ

Does the buyer have a cause of action against the seller for the escrow and lost profits for future sale of his residence?

Asked by Odrasalj, Millstone Township, NJ Tue Jan 15, 2013

Seller signs a contract to purchase property for $855,000, agrees to apply for a mortgage of $600,000 agrees to total down payment of $255,000.
Seller & Buyer agree to following contingency:
“The appraised value ascertained by the buyer’s lender shall only be significant to this transaction if the results of said appraisal causes Buyer’s lender to deny the Buyer’s mortgage for the amount stated in the contract. The mere findings of the lender’s appraisal shall not entitle buyer to cancel the contract if Buyer’s lender will approve the mortgage as noted in the contract”.
Appraisal comes in at $775,000.
Seller sends buyer mortgage rejection for $684,000.
Seller tells buyer to apply for correct mortgage amount agreed upon in contract of $600,000. Buyer refuses to apply for mortgage of $600,000 and terminates contract.Seller sells his house for $780,000 a year latter. Lost profit of $75,000.

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Answers

3
My professional recommendation is to seek the advice of a good real estate attorney.
0 votes Thank Flag Link Tue Jan 15, 2013
you need to ask your attorney on this one. but sounds like you have a case.
0 votes Thank Flag Link Tue Jan 15, 2013
Your post is confusing. Are you interchanging seller with buyer??
0 votes Thank Flag Link Tue Jan 15, 2013
You are correct I reversed buyer & seller.Here is correct version:
Buyer signs a contract to purchase property for $855,000, agrees to apply for a mortgage of $600,000 agrees to total down payment of $255,000.
Seller & Buyer agree to following contingency:
“The appraised value ascertained by the buyer’s lender shall only be significant to this transaction if the results of said appraisal causes Buyer’s lender to deny the Buyer’s mortgage for the amount stated in the contract. The mere findings of the lender’s appraisal shall not entitle buyer to cancel the contract if Buyer’s lender will approve the mortgage as noted in the contract”.
Appraisal comes in at $775,000.
Buyer sends Seller mortgage rejection for $684,000.
Seller tells buyer to apply for correct mortgage amount agreed upon in contract of $600,000. Buyer refuses to apply for mortgage of $600,000 and terminates contract.
Seller sells his house for $780,000 a year latter. Lost profit of $75,000.
Flag Tue Jan 15, 2013
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