Real Property Law

In seller's action for breach of a contract to purchaser real property, purchaser appealed from Supreme Court's grant of summary judgment to seller. The Appellate Division affirmed, holding that purchaser's refusal to close was not justified by any provisions in the sale contract.

Seller and purchaser entered into a standard form real estate contract to sell a house for $395,000 "as is." The contract permitted a structural inspection, and provided for cancellation of the contract if the inspection revealed substantial defects, but also gave purchaser a 10-day deferral in cancellation to provide the parties an opportunity to agree to new terms. When the inspection revealed defects, purchaser deferred cancellation, but seller provided written notice that she was unwilling to make repairs or offer concessions. The parties then proceeded to a scheduled closing. Seller's lawyer presented payoff letters for two mortgages on the house. Although purchaser appeared at the closing with several checks, including checks made out to the mortgagees for the payoff amounts, she refused to tender the checks or close. Seller then brought this action for breach of contract. Purchaser contended that seller had breached because the contract required seller to transfer the property by means of a warranty deed with lien covenant, and seller could not transfer free of liens because the mortgages were still outstanding at the date of the closing. Supreme Court nevertheless granted summary judgment to seller.