Adam Leitman Bailey, P.C. Threatens To Retain Contract Deposit, Forces Immediate Closing

By Andrew C. Jorges

Attorneys at Adam Leitman Bailey, P.C. represented the frustrated sellers of a multi-million dollar property in Hewlett Harbor, New York, whose contract of sale was in jeopardy after the buyers repeatedly refused to close title in accordance with the terms of the agreement.

The sellers, who were initially represented by different legal counsel at the outset of the transaction, entered into a contract of sale for the property with the buyers that provided for a closing date “on or about” February 18, 2016. Despite numerous attempts by sellers’ prior counsel to schedule a closing, the buyers refused to close on or before February 18, 2016.

The sellers, fearing the buyers would be able to walk away from the contract, retained ALBPC to either compel the buyers to promptly close, or retain the contract deposit as liquidated damages.

Within hours of being retained, ALBPC sent the buyer’s attorney a letter unilaterally designating a “time of essence” closing date within thirty (30) days, and further advised that in the event purchaser failed to timely close within said thirty (30) day period, the buyers would forfeit their contract deposit totaling $247,500.

Only nine (9) days after being retained and sending a “time of essence” letter to the buyers’ counsel, the parties successfully closed on the sale of the property at the offices of ALBPC with sellers receiving the balance of the sales price.

Further, pursuant to a post-closing possession agreement that was negotiated during the course of the transaction, the sellers remained in possession of the premises for the entire summer season at a rental amount far below market rate.

Andrew C. Jorges, Esq., and another attorney represented the sellers in this transaction.   

Adam Leitman Bailey PC - New York Real Estate Attorneys