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Munson v. Germerican Associates

Appellate Division of the Supreme Court of New York, Second Department
Feb 26, 1996
224 A.D.2d 670 (N.Y. App. Div. 1996)

Opinion

February 26, 1996

Appeal from the Supreme Court, Westchester County (Barone, J.).


Ordered that the judgment is affirmed, with costs.

The plaintiff contracted to purchase a condominium from the defendant. The contract contained a mortgage contingency clause providing, inter alia, that the contract would become binding upon the plaintiff's obtaining a "satisfactory mortgage commitment", defined as a commitment in "customary form" issued by a lending institution, to make a conventional 30-year fixed rate loan in an amount not to exceed $146,000 at the prevailing interest rate, secured by a lien on the unit. The plaintiff timely obtained a mortgage commitment from Citibank conditioned upon her selling her existing cooperative apartment at a specified price or leasing the apartment at a specified rental. However, the plaintiff was unable to sell or lease the apartment within the relevant time parameters. Therefore, the commitment was withdrawn and the plaintiff sought the return of her $18,250 down payment.

Since the plaintiff could not comply with the conditions contained in the commitment within the time period provided in the parties' contract, the conditional commitment was not a firm, satisfactory commitment and thus did not cause the contract to become binding (see, Finkelman v. Wood, 203 A.D.2d 236; Lindenbaum v. Royco Prop. Corp., 165 A.D.2d 254; Kressel, Rothlein Roth v. Gallagher, 155 A.D.2d 587; Weaver v. Hilzen, 147 A.D.2d 634). Therefore, because the plaintiff was unable to obtain satisfactory financing, the Supreme Court correctly determined that the plaintiff was entitled to the return of her down payment pursuant to the terms of the parties' contract.

The defendant's remaining contentions are without merit. Bracken, J.P., Rosenblatt, Miller and Friedmann, JJ., concur.


Summaries of

Munson v. Germerican Associates

Appellate Division of the Supreme Court of New York, Second Department
Feb 26, 1996
224 A.D.2d 670 (N.Y. App. Div. 1996)
Case details for

Munson v. Germerican Associates

Case Details

Full title:JANICE MUNSON, Respondent, v. GERMERICAN ASSOCIATES, Appellant

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Feb 26, 1996

Citations

224 A.D.2d 670 (N.Y. App. Div. 1996)
638 N.Y.S.2d 739

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