Legal Question in Real Estate Law in New Jersey

mortgage commitment clause

i have a mortgage commitment on a house I am trying to buy. My question is if I get a mortgage commitment , & my buyers cannot get a mortgage to buy my condo, I will not have my down payment of $300,000 which means I cannot get a larger mortgage. Will my sellers have a right to keep my deposit?

Asked on 5/01/08, 10:58 pm

3 Answers from Attorneys

Gregory Kinzel Law Office of Gregory F. Kinzel, LLC

Re: mortgage commitment clause

As with most legal questions, the answer is "it depends." It depends on the wording of your mortgage contingency clause. If your mortgage contingency clause specifies that a condition to first sell your condo is not grounds for cancellation under the mortgage contingency clause, then yes, you may be in default of your purchase contract. If the mortgage contingency clause does not include such limiting language, then you most likely will not be in default. If your purchase contract specifically states that it was not contingent on the sale of your condo, then you may be in default.

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Answered on 5/02/08, 9:44 am

Bernard J. Berkowitz Berkowitz & Raiken

Re: mortgage commitment clause

It depends on how your contract or your mortgage committment is worded. Ask your attorney. If you don't have an attorney, send me the documents and I will review them for you.

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Answered on 5/02/08, 10:01 am
Robert Davies The Davies Law Firm, P.A.

Re: mortgage commitment clause

I just hate it when I see a message like yours.

It tells me that a nice, ordinary person (like you) can hire an attorney who WILL NOT answer your simple, important questions.

If you have an attorney, and asked this question but did not get a clear answer, fire him/her now.

The attorney is not doing his/her job.

If you are in the middle of selling your house and buying the new one, and do not know the answer to this question, then you MIGHT have a big problem.

A $30,000.00 problem.

And you might have a claim against your attorney for his/her failure to give you correct and complete legal advice.

And you can tell your attorney I said so.

You should have known the answer to this question long before your signed any contracts or gave $30,000.00.

I know that I absolutely and certainly would advise any client of mine about this long before your money was at risk.

The answer to your question will depend on the agreement you have, the contract with the people that you are buying from. And the answer is LIKELY (I can not know unless I look at the contract) to not be good for you.

Please call my office if you would like my assistance. I would be happy to speak to you on the telephone, but it will take more than just a brief telephone call to assist you with these issues.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru. This website, LawGuru, will NOT let me list my phone number in this response.

Disclaimer: Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The response that you have received is based only on the small amount of information which you have provided. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.

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Answered on 5/02/08, 12:05 pm

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