1. What Is a Refund of Purchase Price?
Federal FTC rules govern consumer cancellation periods across state lines. In New York, General Business Law § 396-r and state property disclosure rules require sellers to deliver disclosures or refund buyer deposits.
Legal Definition and Scope
Federal and State Refund Laws
2. Your Rights As a Buyer
Buyers must issue written cancellation notices within exact contract timeframes. Missing a notice deadline can waive refund rights, allowing the seller to retain deposit money as liquidated damages under state law.
Contractual and Statutory Refund Protections
Timeline for Claiming Refunds
3. Common Situations Requiring Refunds
Hidden structural defects or environmental hazards discovered before closing justify contract rescission. New York property disclosure statutes hold sellers liable for concealing defects, allowing full deposit returns.
Inspection Failures, Misrepresentation, and Seller Default
Property Defects and Hidden Issues
4. How to File a Refund Claim
Standard purchase agreements often require mediation or arbitration before litigation. Alternative dispute resolution offers a faster path to resolve deposit conflicts without the delay and expense of full court trials.
Required Documentation and Demand Letters
Dispute Resolution Options
5. Legal Remedies and Enforcement
Navigating escrow disputes requires prompt action to prevent forfeiture. SJKP's attorneys review contracts and file court actions. Drawing on our attorneys' combined experience, our firm secures complete refunds.
Small Claims Court and Litigation
Working with an Attorney
6. Challenges and Defenses
Under New York CPLR § 213, breach of contract actions carry a six-year statute of limitations. Purchase agreements set shorter deadlines for cancellation notices. Timely legal counsel preserves recovery claims.
Seller Refusals, Waivers, and Releases
Time Limits and Statute of Limitations
19 May, 2026

