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The closing date is fast approaching. At this point, the seller has the right to do the following: 1) Say not and walk away, citing breach of contract; or 2) Agree to the extension. When the buyer misses the closing date, the seller has the right to terminate the contract and re-list the house for sale or contact other parties who had previously made offers on the property. We refused to extend further, but he was able to use a special clause in the contract. The extension must be in writing and specify a new closing date. Amy Fontinelle, writing for the financial site Investopedia, says the seller may agree to extend the closing date without penalty if they are in no rush to move. The most common reason for wanting to modify the terms of an APS is to amend the closing date. A closing date is generally quite eventful. Another option is to consider the buyer in default. If the seller of a condo wants to extend closing date a week prior to agreed closing date, can the buyer sue for damages? For example, on a house closing date, the following few events occur: 1. Things are just slow. Or perhaps the lender has been slow to do the required processing to meet the closing date. Seller wants to extend closing by 60 days because they can't move overseas (and have given us a week and a half notice) We are to close on May 25, but we have heard from our agent that our seller wants to extend the closing by 60 days. Close on your closing date and if they want to rent back for one week, fine. Obviously the amendment could be done without the $90 per day, but atleast it gives the buyer and buyer's agent notice that your seller doesn't intend to wait around for them to get their financing on track. Unwilling or unable to move out is not a valid reason to extend the closing date unlike a title issue where Seller does have an automatic 30 day extension built into the Purchase and Sale agreement. He chose to list his home and now the buyer lender and buyer's agent have a lot of time money and emotion invested. Also, request a one month security deposit to ensure they move out on the 7th day and as long as home is in the same condition as it was on closing date, they get their full deposit back. 2. It delayed our closing over a week which really should not have been an issue. If seller agrees to extend, should buyer pay for expenses - Answered by a verified Real Estate Lawyer. ? The lender is waiting on underwriting to issue a final approval.” What?!? You have several options: 1. It’s much easier to resolve this upfront than to try to extend closing later on. The language should be clear, unequivocal and provide absolutely no room for interpretation. In any case, the decision will be up to you regarding whether to grant an extension of time. So when next you have a finance approval date that is about to expire let your seller know they have three options: Grant an extension. This issue may end up in court. Require the buyer to pay for the option to extend the closing. This will reset the clock for the period of the extension. Do whatever you can to make the seller follow through. If either party fails to close the sale by the closing Date, the non-defaulting party may … Such an amendment will result in closing date extension. Accept the change, but contingent on your right to rescind before the closing date … Related Articles 5 Common Closing Day Surprises and How to Deal The best option depends on the seller's motivations and the language of the sales contract. The buyer has probably invested hundreds or thousands of dollars already by paying for inspections, appraisals, legal fees or attorney reviews, etc. The buyer delivers a check to the seller-usually for balance amount. If a seller needs more time to move, they can specify this while negotiating the sales contract. If the buyer uncovers issues but still wants to buy the house, the buyer can request the seller address the issues. 3. Once a buyer and seller have agreed on the price for a house, they sign a purchase contract that outlines the terms of the deal and includes a closing date. 4. A court might order the contract to be extended, to give the buyer more time to obtain financing. Accept it and wait. He could amend the contract to extend the closing date to allow the lender time to process the loan. Your realtor calls the realtor for the Seller to canvas the possibility of an extended closing…. 7 years ago. When picking a new date, it's important to allow enough time to resolve the cause for the delay. Fixed Closing Date. An extension is likely due to an unforeseen circumstance such as issues with the title, buyer’s financing, buyer’s need to sell their property, or … Do nothing. When the new closing date arrived, the builder was still not ready. Special programs, such as a first-time home buyer program, may take 35 to 45 days. Delays in closing are common, and nine times out of 10 the buyer is the cause of the problem. Sometimes a breach justifies terminating the contract, if the other party wanted to, as when sellers fail to close, don’t set any new or acceptable date for closing, and the buyer needs to terminate the contract and find a new place to live. Then your Realtor says “The buyers want you to extend the contract’s closing date until the 26th.” What?! That is a very long time to wait for closing. Sellers can protect themselves against repeated postponements by making the new date “time of the essence.” If the buyer misses the rescheduled date, he will be liable for penalties and the seller can cancel the deal. But, until that happens, the buyer is able to continue their efforts to obtain finance approval despite the passing of the due date. If the buyer or seller wants to make the closing date one that must be adhered to, they should clearly state that the closing date is a "time is of the essence" closing date. The closing attorney and real estate agent should make it clear that while many times a real estate transaction will close within a few weeks after the date in the contract, the “on or about” closing date is not set in stone and very rarely provides the finite timeframes that most people would expect in a transaction as important as this. Your real estate agent will have the proper form for you to sign. Most states allow the buyer a “reasonable” adjournment of the closing date before the seller can kill the deal. If the buyer misses closing, what happens next is determined by case law and convention in the relevant state. Do not accept it and find another buyer. For example, "Buyer will pay seller $90 per day to extend the closing date due to any buyer or lender delays." Home buyer wants to extend closing date due to lender. But sometimes the buyer or seller wants to speed up or slow down the process, and that requires changing the closing date. Generally, the seller has two options: walk away from the deal or give the buyer extra time to close. When buyers are doing everything they can to make a deadline in the contract, or the closing date, but are delayed for conditions beyond their control, they are doing what they agreed to do. It is actually fairly common to extend closing dates because (a) the seller needs to move out, (b) the house is not ready, or (c) the lender of the buyer is not ready. However, since time is not of the essence to the closing date, the buyer might argue that a short delay in closing is not a material breach of contract. The amendment must be done prior to the closing date. When the closing date was originally determined and the contract signed by both parties, that contract is binding. An extension is a written addendum to the contract that establishes a new closing date two or three weeks in the future. Buyer’s Signature _____ Date _____ Print Name _____ We won’t be closing on the 20th. The parties express their actual intent in setting the closing date. In the event it is absolutely necessary to grant buyer possession prior to closing, you should seek the advice of a real estate attorney, who can draft an appropriate pre-closing occupancy agreement, to address the rights and obligations of the parties during buyer’s pre-closing possession period. The seller and I have agreed upon a closing date of 07/05 On the evening of 06/24 he asked if we can extend their move out date until 07/15. Most buyers and sellers will agree to extend the closing date by a couple of weeks, if necessary. … I just did a refinance on my place, took about 60 days from start to finish. Question Details: We are the buyers. Most real estate contracts specify a fixed closing date but do not make time of the essence. The closing date extension addendum is used when the parties both agree to extend the date at which the buyer may close on the property. You have a home of your own that you are trying to sell but for any one of a number of reasons, either the home hasn’t sold or you can’t get a closing date that coincides with the one for your new purchase. The type of mortgage and the lender have the most impact on how soon closing occurs. The buyer may have to pay additional costs, depending on when the extension was requested; - for example, if the extension is requested on the closing … Best practices for extending the closing date in a residential deal on SCR310/300 forms can be read in this article. 2. This Amendment is void and of no effect if it is not signed by the Buyer and returned to the Seller or the Seller’s Agent within twenty-four (24) hours from the time it was sent to Buyer or the Buyer’s representative. There is no reason the buyer should be waiting on the seller. 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