FAILURE TO TIMELY CLOSE RESULTED IN WAIVER OF RIGHTS AND LOSS OF DOWNPAYMENT
After the buyer failed to close on a $2.2mm piece of property located in Old Westbury, L.C., the seller held the buyer in default, cancelled the contract, and retained the downpayment. When the buyer later initiated a lawsuit, L.C., moved to dismiss the case, and to cancel a “notice of pendency” that had been filed against the property, and the Nassau County Supreme Court ended granting that request.
On appeal, the Appellate Division, Second Department, noted that the underlying documents were clear and unequivocal. After multiple delays, the contract amendments provided that in the event of a failure to close (on the extended date), the buyer understood and agreed that it would waive “all claims of any right, title, and interest in the property and the down payment.”
Given that “unambiguous” language, the AD2 thought the court below had “properly granted” dismissal and affirmed the outcome.
The was pretty dismissive, don’t you think?
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