Legal Question in Real Estate Law in New Jersey
NJ real estate question: At what point is the buyer's deposit at risk?
2 Answers from Attorneys
In a nutshell... once all the contract contingencies (if any) have been met or expired. Please feel free to contact me ASAP so that we may explore your options and protect your legal rights. 973-921-0600.
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If there are no Realtors involved, the deposit is at risk the minute the buyer gives it directly to the seller.
If there are Realtors, and if the seller is honest and dealing in good faith, then:
- if the buyer does not meet deadlines,
getting inspections done and notifying the seller what the seller should do to satisfy and inspection deficiencies;
- if there is a mortgage contingency and the buyer doesn't apply during the time specified, or doesn't exercise the option to cancel by the deadline for commitment, if no mortgage commitment is received, the deposit may not be returned.
- if the buyer does not make settlement on the property by the settlement date
in all of those cases the deposit would not be returned.
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