Co-ops and Condominiums

In co-op sellers' action for a declaration that they are entitled to retain purchaser's deposit, purchaser appealed from Supreme Court's grant of summary judgment to sellers. The Appellate Division affirmed, holding that purchaser was not entitled to cancel the contract with impunity.

Purchaser contracted to buy the subject co-op apartment for $2.75 million, and paid a deposit of $275,000 into escrow. The contract called for a closing on or about July 1, 2022. The contract also included a provision entitled "Seller's inability" which gave the seller' the right to adjourn the closing if seller were unable to transfer the shares and provided that if seller did not elect to adjourn or if on the adjourned ate seller was still unable to perform, either party had the right to cancel the contract, and seller's liability would be limited to refunding the deposit. After the contract was signed, purchaser failed to submit her application for board approval until after the due date, and, after submitting the application, cancelled her board interview. At that point, purchaser purported to cancel the contract and withdrew her application to the co-op board. Seller then brought this declaratory judgment action, and Supreme Court granted summary judgment to seller, holding that purchaser was not entitled to return of her deposit. Purchaser appealed.