Expert: Hans Weber, Licensed Broker Associate - 6/28/2009

Question
I decided I no longer wanted to purchase a home in New Jersey because I encountered problems with my daughter switching college.  I live in New York. I knew it was not a legitimate reason to breach the contract, but I went with this explanation because I thought all I had to lose was my downpayment (earnest money).  I am now being threatened with having to "pay damages" (in addition to losing my money) once the seller puts the house back on the market.  Needless to say I am very concerned.  Can you tell me what "damages" I might have to pay?

Answer
Dear Althea,

Thank you for your question.

I work in New York so I am not up to speed on New Jersey rules.

In New York, if one defaults on the contract the seller can keep the escrow money.  It sounds like you are willing to give up your deposit to get out of the contract and not buy the house.  I would think that would be the extent of your liability.

Of course they can sue you to perform, but I think they are blustering.

Best idea would be to speak with the lawyer who reviewed the contract with you.

Good luck.

Hans