Pulling the deal?

If the homeowner cannot deliver a clear title, can we walk away and get our DP back?

Re: Pulling the deal?

As always, your contract governs, so you should consult your contract and/or attorney. And I am not sure what the title problem is that is preventing the seller from conveying clear title, so it's hard to comment. But generally:

There is usually a standard provision in contracts providing that the seller will give the purchaser title that a recognized NY Title Insurance Company will be willing to approve and insure. (Unless, of course, there was something else negotiated.)

Also, if you are getting a mortgage, your lender will require clear title to close, and there should be a mortgage contingency in your contract, giving you an out if you cannot secure financing.

So yes, you should be able to walk away from the deal (and not lose your DP) if the seller can't deliver clear title.