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Updated over 7 years ago,
Seller Wants To Back Out Of Contract, New York State
Greetings fellow BPers,
I am currently under contract to purchase a 4plex, a single family and a large storage building all on one parcel. The seller now wants to back out of signed contract. I have tried numerous times to conduct home inspections but I have only been able to inspect 2 out of the 5 total units due to seller noncooperation. I have the whole property under contract for 62K and the value of the property is probably close to 90k or better. The current total rental rates for the property (which all units are filled) is a little low at $1900/month.
Can the seller legally back out of this contract with no repercussions? I will be losing approx $30K in equity right of the bat and since it is an investment property i will also be losing income. Using the current total rental rates of $1900/month, over a short 5yr time frame I will be losing approx $57K in income (1900x12= $22,800 per year x 5 years = $114,000, take 50% away for expenses = $57K).
I have informed my attorney that I want to force the sale or be paid $85K to walk away and am awaiting a response from my attorney.
Any insight or information you may have is GREATLY appreciated.
Thank you