Buyer defaults on a time is of the essence contract.

[Roger R.]

I was scheduled to close on the sale of my NYC property on March 31st.  One day before the close date the buyer called me up and said he wouldn't be closing.  He gave invalid reasons why he couldn't close (Title companies weren't working, a lawyer not associated with the sale got corona, city registrar was closed).  We have a time is of the essence clause in our contract, but with the courts being closed, I can't enforce. I had my lawyer write a letter to the other side to say they are in default.  I'm holding a decent size down payment. Any ideas how this will play out. 

[Greg Dickerson]

Originally posted by @Roger R.:

I was scheduled to close on the sale of my NYC property on March 31st.  One day before the close date the buyer called me up and said he wouldn't be closing.  He gave invalid reasons why he couldn't close (Title companies weren't working, a lawyer not associated with the sale got corona, city registrar was closed).  We have a time is of the essence clause in our contract, but with the courts being closed, I can't enforce. I had my lawyer write a letter to the other side to say they are in default.  I'm holding a decent size down payment. Any ideas how this will play out. 

Given the current circumstances you need to be reasonable but also follow the contract. The best thing for all parties is to close. You need to determine if they are still wanting to move forward or if they are trying to back out. Sending a demand letter is a good move as that usually gives them a few days to close or all bets are off. Depending on the language in the contract and who is holding the deposit you may have a legal battle on your hands if they want to try and get the deposit back. They can file a claim and the deposit will remain in escrow account until you settle. Right or wrong it will cost you to defend so it's best to try to get the deal closed if they are game.