NY Specific Performance Attorney
Specific Performance Attorney for Breach of NY Real Estate Contract
A New York Specific Performance Attorney can analyze your Contract of Sale to determine what legal options the buyer may have if the seller refuses to complete the New York real estate transaction. If the seller refuses to complete the transaction, the buyer might have a legal right to obtain a court order directing “specific performance” of the real estate contract. Specific performance means that the court would direct the seller to complete the transaction at the agreed price, in accordance with the terms of the real estate contract. The buyer’s entitlement to the remedy of specific performance depends on various factors, including whether the buyer has fulfilled his or her contractual obligations, and is ready, willing and able to close the deal, and whether the property is unique.
Before commencing an action for specific performance, it is important to have an experienced New York Specific Performance Attorney carefully review the terms of the contract of sale, and the circumstances that led to the seller to terminate the real estate contract. Even if the facts do not warrant specific performance, the aggrieved party might be entitled to recover monetary damages sustained as a result of the other party’s breach of the real estate contract of sale.
Contract May Permit a Party to Cancel a NY Real Estate Contract of Sale if Certain Contingencies are Not Satisfied
Most New York real estate contracts of sale contain various contingencies which must be satisfied before the buyer or the seller is required to complete the transaction. These contingencies, which are are designed to protect the buyer and seller, may include mortgage commitment, termite infestation, termite damage, lead paint, asbestos, leaking underground oil tanks, other environmental hazards, title defects, certificate of occupancy or certificate of completion, zoning laws and other municipal or local rules and regulations. In addition, contracts for the purchase of a co-op apartment should contain a provision stating that the transaction is contingent upon the purchaser obtaining written approval from the Co-op Corporation’s Board of Directors. Similarly, contracts for the purchase of a condominium unit should contain a provision stating that the transaction is contingent upon the seller obtaining a written waiver of first refusal from the Condominium’s Board of Managers.
A well drafted real estate contract should minimize the chance for misinterpretation of contract provisions, and potential abuse of contingencies. Unfortunately, many real estate contracts are drafted by transactional attorneys who have no experience in real estate litigation, and are not anticipating the possibilities for abuse of the contract terms. Whether a buyer or seller can legally terminate a contract of sale depends on the specific language of the real estate contract, as well as the particular circumstances that have arisen.
Breach of Contract Might Permit the Non-Breaching Party to Cancel the NY Real Estate Contract of Sale
If one party breaches the terms of the contract of sale, the non-breaching party might be entitled to cancel the transaction. Also, if certain contractual contingencies do not occur, that might give a party the legal right to terminate the transaction. Whether this remedy is available would best be determined by an experienced real estate litigation attorney.
Of course, the typical NY real estate contract of sale does not permit a party to cancel the transaction, merely because they found a better deal, or a better property, or an all cash buyer, etc. Sometimes, a buyer or seller may wrongfully attempt to cancel a real estate contract for an impermissible reason, e.g., another buyer offers to pay the seller a higher price, or the buyer finds a better deal on another property.
Even though a party to a real estate contract of sale may have no legitimate basis for cancelling the contract of sale, the buyer or seller seeking to terminate the contract might act in bad faith, and fabricate facts in order to arguably fit into one of the contingencies stated in the contract of sale.
Possible fraudulent schemes a party might try to use to terminate a real estate transaction might include a seller not cooperating with the title company to cure title defects, or a purchaser deliberately sabotaging an interview with the Co-op Corporation’s Board of Directors, or a buyer failing to submit required financial documentation, or personal references, in order to be rejected by the Board. There are many other instances where a party might wrongfully try to derail a real estate transaction, in order to satisfy their ulterior motive. An experienced Real Estate Litigation Attorney or NY Specific Performance Attorney may be able to analyze the terms of the Contract of Sale, and the circumstances that led to a party terminating the transaction, and determine whether an action for specific performance may be available to the aggrieved party.
Role of a New York Specific Performance Attorney Before Litigation Becomes the Only Option
What should a non-breaching party to a real estate transaction do when faced with the other party’s wrongful attempt to terminate the contract of sale, or to create insurmountable obstacles to closing the transaction? It is important that the non-breaching party (who is at risk of losing the deal) be represented by a New York real estate litigation attorney, who has experience with New York real estate specific performance actions. If your real estate lawyer’s experience is limited to real estate transactions, we strongly suggest that you retain an experienced real estate litigation attorney to join your legal team.
In our experience as real estate litigation counsel, we have worked closely with our client’s transactional attorney, in order to achieve our client’s goal of closing the real estate transaction. We have often achieved that goal without the need to start a lawsuit for specific performance of the real estate contract. Our teamwork approach has had a high rate of success in reversing the course of the party seeking to wrongfully terminate the contract. Our experience supports our belief that a credible threat of specific performance litigation, coupled with the adversary’s realization that our client has a winning case, is often sufficient to compel the other party to abandon his or her plan to wrongfully terminate the contract of sale.
Our NY Specific Performance Attorney May Be Able to Save Your Real Estate Transaction and Avoid Litigation
As the attorney representing the non-breaching party who is simply trying to close the transaction in accordance with the contract of sale, we work tirelessly to:
- meticulously adhere to the terms of the contract of sale, to prevent our adversary from claiming that our client breached the contract
- insist that the adversary comply with the terms of the contract of sale
- prove that the breaching party has no legitimate basis to cancel the real estate contract of sale
- uncover the breaching party’s wrongful attempt to disguise their unjustified breach of contract, so that it appears to be a lawful termination of the contract of sale
- compel the breaching party to close the transaction.
Actions for Specific Performance for Breach of Real Estate Contract
If the seller wrongfully refuses to complete the transaction, the buyer may have a right to sue for specific performance. The goal of a lawsuit for specific performance is for the court to force the other party to close the transaction in accordance with the terms of the contract of sale. Whether the court will award specific performance of the contract of sale will depend on the terms of the contract, as well as the circumstances of the other party’s breach of the contract. In order to be awarded specific performance of the contract of sale, the aggrieved party will need to prove that he or she was ready, willing and able to close the transaction. For example, the buyer will need to prove that he or she had the available funds to complete the purchase of the property.
Notice of Pendency (Lis Pendens)
If the purchaser starts a lawsuit for specific performance, it is important to simultaneously file a Notice of Pendency (Lis Pendens), which gives notice to anyone checking the real property records that there is litigation pending against the property.
Seller’s Remedies if Buyer Terminates the Contract Without Legal Justification
If the buyer terminates the contract without legal justification, he or she will probably be compelled to forfeit the down payment as “liquidated damages.” Alternatively, if the contract does not contain a liquidated damages clause, the purchaser might be liable for even more money, such as the difference between the agreed purchase price and the sales price when the seller sells the property to a different purchaser, as well as other money damages.
For the seller to be awarded the right to keep the down payment, or to recover money damages, the seller will need to prove that he or she was able to deliver good marketable title to the property, together with the other documents required by the contract of sale, such as a certificate of occupancy, etc.
How Our Real Estate Litigation & Specific Performance Attorney Can Help You
In our experience, a New York Specific Performance Attorney may be successful in convincing the seller to close the transaction, in order to avoid litigation. We will typically attempt to reach an out of court settlement acceptable to our client. If that is not possible, we will evaluate the likelihood of succeeding in an action for specific performance to compel the property owner to complete the transaction and convey title to the property, and/or to recover money damages as a result of the seller’s breach of contract. We will discuss our evaluation and strategy with our client, and if appropriate, we will promptly commence litigation for specific performance of the real estate contract of sale.
If your transactional lawyer has been unable to force the other party to close the real estate transaction, we suggest you discuss your situation with a real estate litigation attorney experienced in New York specific performance actions.
To discuss your New York Real Estate breach of contract dispute, and possible specific performance action, we invite you to complete our NY Specific Performance Questionnaire, or click Contact Us. You may also call Michael W. Goldstein for a free initial telephone consultation, or to schedule a consultation at our office.
How Our Real Estate Litigation & Specific Performance Attorney Can Help You
In our experience, a New York Specific Performance Attorney may be successful in convincing the seller to close the transaction, in order to avoid litigation. We will typically attempt to reach an out of court settlement acceptable to our client. If that is not possible, we will evaluate the likelihood of succeeding in an action for specific performance to compel the property owner to complete the transaction and convey title to the property, and/or to recover money damages as a result of the seller’s breach of contract. We will discuss our evaluation and strategy with our client, and if appropriate, we will promptly commence litigation for specific performance of the real estate contract of sale.
Contact Our NY Specific Performance Attorney to Discuss Your Real Estate Contract Dispute or NY Specific Performance Action
If your transactional lawyer has been unable to force the other party to close the real estate transaction, we suggest you discuss your situation with a real estate litigation attorney experienced in New York specific performance actions.
To discuss your New York Real Estate breach of contract dispute, and possible specific performance action, we invite you to complete our NY Specific Performance Questionnaire, or click Contact Us. You may also call Michael W. Goldstein for a free initial telephone consultation, or to schedule a consultation at our office.
Disclaimer | NY Real Estate Specific Performance Attorney
Visiting our website, submitting any information via questionnaire or email, or discussing your New York Real Estate breach of contract or Specific Performance dispute with our NY Real Estate Specific Performance Attorney does not create an attorney-client relationship. An attorney-client relationship with our law firm or with our NY Real Estate Specific Performance Litigation Attorney can only be established with the signing of a written retainer agreement prepared by our law firm.
Prior results do not guarantee or predict a similar outcome with respect to any future case or legal matter.
