We were purchasing a condo from the sponsor who developed the building, converting apartments from their prior rental condition. This included new appliances, countertops, floors, molding, etc. There was a thick prospectus that my attorney recommended I read, and file away safely. The contract for sale did not anticipate protections my attorney wanted for us, primarily a mortgage contingency with the ability to retrieve our down-payment if we could not close as planned with mortgage terms as expected. These contingencies were not normally allowed. However, with sales languishing due to the current economy, the sponsor’s attorney was willing to consider some, but not others. My attorney was insistent, invoking his Golden Rule: he who has the gold, rules. Believing that we, as purchasers, had all the leverage, he encouraged me to walk away from the deal if we didn’t get every allowance he wanted. However, I was not so cavalier. Units in the building were selling quickly, and this was the one we wanted. After several unpleasant volleys, the two attorneys hit an impasse. The sponsor would give us a contingency for getting any mortgage, but not constrained by the mortgage rate we expected. My attorney insisted we couldn’t trust the bank, and we needed an out if they changed our terms. I was concerned that we were becoming more of a hassle than our sale’s discount would tolerate. While the attorneys wrangled, LaLa kept in contact with the sponsor reassuring them that we were still committed. The fact is, we didn’t have the gold; the bank did. And until they had a signed contract, we could move forward with our mortgage. I had faith that the mortgage company would give us the rate they had committed to. Over my attorney’s objection, I asked him to make the deal. In the end, it all worked out. But until we blinked, it was a very uncomfortable.

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