September 1, 2015

The Supreme Court, Suffolk County has upheld a purchaser’s right to cancel a contract and recover a $560,000 downpayment upon discovery of mold in the home, in Minerof v. Lonergan, Index No. 14-68809.   The contract at issue included an express representation that there was no mold or mold remediation in the premises.  When mold was discovered at the home inspection, the purchaser requested a refund of the downpayment, but the seller refused and accused the purchaser of breaching the contract.  In the ensuing litigation, the court granted the purchaser summary judgment, concluding that the no-mold representation went to the heart of the contract and the no-mold-remediation clause precluded the seller from demanding an opportunity to cure.