I have the deal that if the purchase under any circumstances does not success, I will lost my 10% deposit. I am afraid that is a scram.

Asked by Roger, Brooklyn, NY Sun May 26, 2013

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7
Anna M Brocco, Agent, Williston Park, NY
Mon May 27, 2013
Have you consulted with your attorney; if you haven't hired one yet, highly recommended for all paperwork....
1 vote
Kathryn Lilly, Agent, New York, NY
Mon May 27, 2013
Always have an Attorney of your choice; not dictated by the seller, go over all and any paper work that you sign.
If you cannot have an Attorney of your choice, walk away from the deal.
Yours,
Kathryn Lilly, Broker
Realty on the Greene, LLC
718-858-7600
1 vote
Mitchell Fel…, Agent, Brooklyn, NY
Tue May 28, 2013
Dear Roger:

You should be having an attorney represent you in the transaction who will review the contract with you and advise you if you should sign it or not and what the risks are. If you are looking to get a mortgage, there should be a standard mortgage contingency clause in the contract stating that if you do not get the mortgage you will be given back your down payment (unless you willfully default or breach the contract).

Unless the homeowner is simply not willing to give you or any buyer a mortgage contingency. At times this can be the case but it is very rare. A seller who takes this stance is basically telling you that if you have any doubt about your ability to get the mortgage, don't buy my house. Sometimes a buyer may be so confident that they will get the mortgage that they are willing to take that risk knowing they will lose their down payment if they fail to get the mortgage. The only buyers who really can do this are people who go through an underwriting process with a bank to determine that they are 100% qualified to purchase. Even with that, there is still a chance that the buyer can be denied the loan if the bank appraisal comes up short of the asking price.

If you think this is a scam, the best way to protect yourself is to hire a great real estate attorney. Just agree to their terms and let your attorney review the contract. If there is anything in the contract you do not like, you can simply back out of the deal before you sign the contract. Once you sign the contract and send in your down payment, then there is no turning back.

There are many other factors that can influence this situation. If you need further assistance, contact me direct. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun May 26, 2013
No., it is NOT common for the buyer to put up a non- refundable deposit.

You aren't looking to do a "rent with the option to buy" are you?

Before you sign anything, why not ask a Realtor to represent you (doesn't sound like you have one)...or, at the very least, pay a real estate attorney to draw up the contract so you can make sure you're protected.

Best wishes..........
0 votes
Roger, Home Buyer, Brooklyn, NY
Sun May 26, 2013
Thank you for your answer. I did not sign the contract yet, but I just wondering is that common in realty's procedure?
0 votes
Gail Mercedes…, Agent, Beverly Hills, CA
Sun May 26, 2013
Your purchase contract should have contingences: Property Inspection, Appraisal Contingence, Loan Contingence, Termite Inspection, Walk-thru and etc. Is your contract written on a Board of Realtors Form? Check with realtor and realtor's broker to verify if purchase agreement form is legal under New York State

Gail Mercedes Cole
http://yourwestsidehomes.com/
0 votes
Shanna Rogers, Agent, Murrieta, CA
Sun May 26, 2013
Hi Roger,

Why would you sign a contract like that? You should always have contingencies.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
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