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A Successful Closing

Posted by eal51 (My Page) on
Thu, Jun 11, 09 at 20:48

Despite all the negative leaning news in real estate, the son and daughter-in-law will close on their first house tommorrow!!!!!

A couple of last minute items came up today but were cleared up and they're good to go!!!

Enjoy the journey.
eal51 in western CT


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RE: A Successful Closing

My friend just received disturbing news on his sister's business building that she sold years ago. The buyer of the building some 4 years ago received a large inheritance and used part of the money ($400,000) to make the purchase. To make a long story short, the business failed and the buyer having financial difficulties sued the original seller stating that the building (In Flemington, NJ) was not worth the $400k. The Judge during arbitration adjusted the principal value of the contract forcing the original seller to return $200,000 of the $400,000. The original seller has now filed for bankruptcy.

My Question: Is contract law pertaining to commercial and residential now all meaningless with these new bankruptcy laws? Is a "successful" closing really a potential ticking time bomb if the buyer later files for bankruptcy?


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