Adam Leitman Bailey, P.C. Threatens To Retain Contract Deposit, Forces Immediate Closing
Attorneys at Adam Leitman Bailey, P.C. represented the frustrated sellers of a multimillion-dollar property in Hewlett Harbor, New York, whose contract of sale was in jeopardy after the buyers repeatedly refused to close the 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 Adam Leitman Bailey, P.C. to either compel the buyers to promptly close, or retain the contract deposit as liquidated damages.
Within hours of being retained, Adam Leitman Bailey, P.C. 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 Adam Leitman Bailey, P.C. 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 the market rate.
Andrew C. Jorges and another attorney represented the sellers in this transaction.