Expert: Sue Bernstein - 12/18/2007

Question
Hi Sue,

Back in June of 2007 my husband and I signed a sales agreement to purchase a condo, which was in the process of being constructed in Santa Clara County (California). We put down a 3% deposit with the expectation that the condo would be completed in September. It's now the end of December and they still don't know when it will be completed. Also, the market conditions have recently changed and the prices have significantly come down. Is there any way we could get our deposit back aside from not qualifying for financing (we have been prequalified by their lender)?

Answer
Julia,

I had previously answered this question but it may have fallen into some black hole.  I suggest you look at your contract and if the contract called for a date in September then the seller is in default and you should be able to cancel and get your deposit back.  You might want to talk to the developer and see if he is interested in re-negotiating the price.  At any rate, submit a letter requesting cancellation and return of your deposit.

Hope this helps.

Sue Bernstein