Peter and Mary Kornman contracted to buy a half acre of waterfront property from Stenda Realty LLC and tendered a $243,250 down payment. And, before that agreement was signed, Stenda sent the Kornmans' attorney a survey of the parcel.
When the title company refused to remove an "underwater exception" on land beneath the high water line, and it was discovered that the property was actually smaller than a half acre, the Kornmans refused to show up at the closing.
After Stenda sued to keep the down payment as liquidated damages, the Suffolk County Supreme Court found in the seller's favor.
Since Stenda was "ready, willing and able" to close, and the Kornmans had been given a copy of an accurate survey before the contract was signed, the Appellate Division, Second Department, thought there was no basis for the Kornmans to back out of the deal.
Bet the Kornmans took exception to that.
To view a copy of the Appellate Division's decision, please use this link: Stenda Realty, LLC v. Kornman