How to send a "Time of Essence Letter" without risking my deposit?

[New Jersey Home Buyer]

House was due to close on July 31 with the seller requested to remove underground oil tank and replace septic system. The bank requested inspection of the property after the repairs are done – they need at least 6 days prior to closing notice in order to send someone for inspection. Nothing was done so far by the seller.

We asked our attorney to send them a Time of Essence letter asking for a closing date of August 21 with the request that the repairs to be done by August 14- so the bank has time to inspect.

The attorney says that if they don’t finish the repairs in time for the inspection but finish them in time for closing, we cannot have the closing and will lose our deposit money.

Is there anything we can do? We want the house but what if they delay the repairs indefinitely?

[Eagle]

I think you need to read the contract yourself. If the closing date was July 31 and seller was to remove the tank by that time, and did not, then seller may be in breach of contract.

[New Jersey Home Buyer]

Thank you.
In NJ the contract states "The estimate closing date will be on or about July 31, 2009". So I guess they are not bound by the date. That's why we asked the lawyer to write the "Time of Essence" letter.

[Eagle]

Why didn't your attorney first contact the seller's attorney and discuss the time frame for the repairs? Maybe there is a legitimate reason for the seller's inaction.