financing terms in contract of sales

[dz123]

What is the name of your state? New York

I recently signed a contract to purchase a coop apartment in New York City, and agreed to the financing terms of 50% down and 50% financing as stated in the contract. The coop's minimum down requirement is only 25%. The reason that the seller requested 50% down is to improve my chance of getting the coop board approval. After discussing with a loan officer, I realized that I'm actually qualified for 75% financing on the apartment. My question is: if I decide to apply for 75% financing instead of 50% as stated in the contract, get the bank commitment, but for whatever reason get rejected by the coop board, can the seller hold me in breach of the contract and retain my purchase deposit?

What does your contract say about these contingencies?

[dz123]

the financing contingency in the contract states: "This Contract is conditioned upon the Purchaser obtaining a 20/30 year conventional mortgage loan covering the premises in the amount of no more than 50% of the purchase price at the prevailing rate of interest."

I know nothing about New York law, but you did not say what the contract said about breach, etc.

I suspect this involves a lot of money so you would be well-advised to seek the counsel of a good real estate attorney in your area.

In my opinion, however, it would seem odd to me that a seller wouldn't rather have 75% of his money right up front than 50%. Of course, I am not thinking about the tax ramifications on the seller's part. There might be something there, but I don't even do my own income taxes so I sure don't know anything about taxes!