Contracts—Specific Performance—Time of the Essence Letters—Right to Keep Deposit—Motions for Summary Judgment Denied
THE PLAINTIFF (purchaser) had agreed to purchase real property from the defendant seller “A” (seller). The contract had a closing date of Aug. 1, 2012 and contained a liquidated damage provision. The contract further provided that, prior to closing, the seller would cause a septic system to be “abandoned and/or removed in compliance with the requirements” of a “County Department of Health Services (County) and shall submit evidence of same to [the purchaser] at or prior to closing.” The contract also provided for “a mortgage contingency period of 60 days from the date of the contract.” In the event that the purchaser could not timely obtain a mortgage commitment, either party could terminate the contract. The contract also stated that the seller would lease part of the premises from the purchaser, “pursuant to a formal lease between [the purchaser] and [the seller] to be executed at closing.” The terms of the lease were an exhibit to the contract and execution of such lease was a condition of closing.
