Recourse when seller refuses to sell - situational - Posted by Edward
Posted by Edward on September 05, 2004 at 15:08:23:
Hello everyone,
I have a question that is based on a quick (I hope) story background: I, the buyer, signed a contract on a condo the 1st week of July, with the estimated close date on the contract being 8/16/04.
At the time I signed the contract, the seller was in the middle of completely renovating the entire condo. At the time of signing, more than 1/2 the work was already done, and I was assured everything would be complete by close (the seller actually came up with the close date).
As fate would have it, seller postponed close from 8/15 to 8/24, and then again to 8/27. On 8/26 I met with the seller (who was also the owner of the real estate company, as well as owner of the condo building – as luck would have it), and voiced my concerns that closing may not take place on 8/27 as we had planned because of the work not being done (I later found out all paper work on seller’s side was complete on 8/11, so it was just their lack of finishing the work that pushed us back). Seller reassured me that all was fine, and he took me to see the room at which point I again voiced my concern that there was too much work to do to close by the next day. He told me not to worry, they’d work on it 24/7 to ensure that the work was complete by our closing at 1:30pm the next day. I emphasized that this work needed to be complete, as my lease for my apartment runs out that weekend, and from that point forward I have no place to live.
I went back to my attorney and requested an escrow be setup in the amount of $5000, to be held for 2 weeks after close date, to ensure that all work is complete (obviously the account would be charged according to valid receipts). I was told that the seller refused to setup an escrow, but that the seller promised my lawyer all work would be complete by close.
Well, during out walkthrough 30 minutes before close, contractors were still working on tiling the bathroom, putting up the medicine cabinet, as well as connecting our appliances in the kitchen (and we were still without a microwave that we were told was supposedly delivered and installed the morning of close). Not only that, but I found a number of defects in the work that was done (laminent on cabinets was already peeling, cabinet measurement was off, etc) – i wasn’t even able to get a glimpse of the bathroom.
I question the seller in a professional, yet stern manner, about his actions (or lack thereof) and requested to know who was responsible for this situation. In a fit of rage he told me that the deal was called off, and that he refuses to sell to me. I went to my lawyer who asked if I would accept an escrow account (as discussed the day earlier) to push the closing through. I said yes, however after speaking with the seller my lawyer said that he was told that the seller refuses to close under all circumstances and that if I’d want the property, I would have to take him to court.
I have since had to find a new lawyer (after this event, it was disclosed to me that the lawyer I had chosen has a PERSONAL relationship with the seller that was not disclosed earlier, and so he did not want to continue with litigation possible), as well as a new place to temporarily live and storage for all of my belongings.
Time of essence has been served on the seller, which is set to expire on 9/16. However, up to this point I have had to put out more than $4000 in unplanned moving expenses (storage, rent for this month, etc etc). My question is, will I be able to recoup these costs as well as any other costs accrued while the property is tied up? As of 9/3, I have been told by the seller’s lawyer that he “…refuses to sell to [me] on the basis that I questioned his integrity” – obviously not grounds to invalidate a contract (our contract does not include any stipulations on defaulting).
I really still want this property, however, I also do not feel that I should incur all of the costs because of his behavior. Assuming the seller comes to his senses and agrees to sell before time of essence expires, can I then go to small claims and be successful in receiving compensation?
Also, if he doesn’t close within time of essence, would the courts be able to force the seller to sell the property as well as pay damages? This situation completely stems from the seller’s actions - I was all set to close and had everything prepared from 8/15 onwards.
(The transaction is in NJ)
Thank you for your time-