Dilema reg purchase of a co-op apt in new york city - please advice?

[Anagha]

I saw the apt in august 2007, liked it and decided to buy. Entered into a contract with the seller and set a closing date eventually. Did not close on the closing date since the seller did not bring title to property (yeah, stupid isnt it!). Now I am in a dilema whether to buy or not. here's why -

Never saw the seller, only dealt with her agent and her attorney (to whom she gave power of attorney); instead of title to prop, her attorney brough a 'payout' letter on cl date, my bank & my attorney & mgt company did not accept it, so now we set a new closing date (more than 30 days from 1st cl date and beyond the expiration of my loan committment); called & emailed the superindendant of the building, based on mgt company's advice regarding one repair to the apt from my walkthrough, and its been 5 business days and he still hasnt responded; value of property is $30K to 40K below mkt value currently.

Do you feel I should walk away (i.e. cancel contract) from the deal at this point?

[MYRA C]

First, I recommend that you see a lawyer quickly.


When you buy a co-op you do not buy that specific unit what you buy is a share in the co-operative. This is why they are always under market value as opposed to buying a condominium unit where you buy a specific unit. I don't know of any Bank that will lend funds on a co-op because they cannot foreclose on non payment of the mortgage loan. Mortgages are placed on a specific titled property. You cannot obtain clear title from a co-operative share.
See a lawyer, please, and if you can walk away, you may wish to do so.
If you decide to proceed your lawyer can at least explain the facts about this type of purchase.

[hollywoodmelody]

Do not walk away from the contract. Have your attorney file a letter of non-performance against the agent, Broker and attorney. Ask your attorney to take it to the courts so that you can have documentation of actions that you are doing. If you cancel your contract without following through completely,the buyer can come back and say your loan did not go through and that is the reason why they are filing action against you.

Have seen this happen a few times....