Leeper v. Weintraub

In Leeper v. Weintraub, 273 N.J. Super. 532, 642 A.2d 1032 (App.Div.1994), the defendant seller canceled his contract of sale because the plaintiff did not receive a written mortgage commitment by the deadline provided in the contract. The plaintiff's attorney advised the defendant's counsel that the plaintiff had been verbally approved, but the mortgage was not actually approved until five days after the contractual deadline. The Court reversed a judgment against the defendant, holding that only a written mortgage commitment could satisfy a mortgage contingency clause within the statute of frauds. The Court said that "a seller does not have to assume the risk that an enforceable written commitment will not issue. If the buyer wanted to prevent the seller from voiding the contract, he could have assumed that risk himself by waiving the mortgage contingency clause as permitted in the contract of sale." Id. at 535, 642 A.2d 1032.