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Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 6422
Experience:  20 years professional experience
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Real Estate New Jersey - I have a deposit on a home with Toll

Customer Question

Real Estate New Jersey - I have a deposit on a home with Toll Brothers (closing date in six weeks). Mortgage committment from their lender has a home sale contingency. I have had my house on the market for a year since 2015- with multiple price drops luxury market is very weak. I am listed now well under assessed value now some strong interest but no contract just yet. I asked Toll Brothers for a 60 day extension to allow me more time to sell. Deposits on house total $115,000. I am awaiting a response letter from Toll. May have an offer coming through this week on my house, but not certain yet. Binding arbitration clause in the original contract. What do you suggest I do as next steps?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Maverick replied 1 year ago.
Welcome to Just Answer (“JA”)! My name is Maverick. Please note that: (A) The information we provide is general information. No attorney-client relationship or privilege is formed by communicating with me. If you want legal advice, you must consult with a local attorney in person before acting or deciding not to act based on any information given here; (B) Experts answer questions based on the honor system. When I feel that I have provided you with a complete answer, I will ask for you to assign a feedback rating so that JA will compensate me for my time; and (C) You should not be concerned about any short delays between your questions and my replies. Please know that I answer most questions within the hour if I am signed on. If I am not signed on, then I still make every attempt to respond within 24 hours. Thank you for taking the time to understand how this site works. By continuing, you confirm that you understand and agree to these terms. Answer will follow in the pane below as per above parameters…. 1. I don't understand how the binding arbitration clause has anything to do with them granting or denying you a 60-day extension. Either they will give you one or not. It does not appear that this is an issue that you can dispute but rather one which is simply in their discretion. Do you see my point or am I missing something?
Customer: replied 1 year ago.
My concern is what to do next if they deny any extension of time. I know they will send a default letter and then there would have to be a meeting as to next steps (ie - whether at that juncture they would try to keep my deposit and take the house back and sell it - even though I want it and may be able to go through with the sale if I get a buyer soon). Would I at that point request arbitration if they say they will not give me any more time, will take the house back and keep my deposit? I thought about - worst case asking them to shift my deposit to another lot if they won't return it. Before I go further I am trying to figure out the best way to approach this. Want the house, don't want to lose my deposit. If I have a buyer in the next few weeks they may be more amenable to an extension - I don't know what to do if they deny me an extension and try to keep my deposit.
Customer: replied 1 year ago.
If they won't work with me at all, do I request arbitration on the basis of this being an unforseen delay at the time I signed the contract?
Expert:  Maverick replied 1 year ago.
If they won't work with me at all, do I request arbitration on the basis of this being an unforseen delay at the time I signed the contract? 1. You can try that FM argument but it may be a stretch and further waste time and money. Force Majeure clauses excuse a party from liability if some unforeseen event beyond the control of that party prevents it from performing its obligations under the contract. Typically, they cover natural disasters or other acts of God, war, or the failure of third parties to perform their obligations to the contracting party. It is important to remember that FM clauses are intended to excuse a party only if the failure to perform could not be avoided by the exercise of due care by that party. 2. If there is an answer to this, it would be in the contract you signed. But, I suspect this is probably an issue in their sole discretion. You may want to invite the persons that are going to be deciding this issue out to lunch to see if they are will to extend you the good will that you need. I am sorry. I know this is not what you wanted to hear; but I am assuming that you are paying for a honest and professional answer.