QUESTION
Will I lose downpayment for home if I lost job after signing Contract of Sale?
Asked on Dec 07th, 2016 on Residential Real Estate - New York
More details to this question:
I am currently trying to understand whether, as the Buyer, I will lose my downpayment if I lost my job after signing a residential home contract of sale. Closing date ended November 30, 2016. There was no mortgage contingency, however, Clause "Default and remedies" states: "If Purchaser willfully defaults hereunder, Seller's sole remedy shall be to receive the Downpayment as liquidated damages, it being agreed that Seller's damages in case of Purchaser's default might be impossible to ascertain and that the Downpayment constitutes a fair and reasonable amount of damages under the circumstances and not as a penalty." Contract of Sale signed: September 15, 2016. My unexpected notice of termination: September 23, 2016. Does my job loss count as non-willful default at closing? Is there a case if seller files to claim downpayment?
1 ANSWER
1 Award
While I would have to see the contract to know for sure, you will lose the deposit if you do not close. No contingencies means your job loss is irrelevant. These cases often settle for a percentage of the deposit if you cannot close. If you need to borrow funds to close, but did not do a contingency, that was a mistake. If you have the cash to close, but just do not want to move, consider whether it is cheaper to close and flip the house. Talk to your lawyer. You must have one.
Answered on Dec 10th, 2016 at 1:51 PM