Comments on: A Closing Date without a closing http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: lawatha http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-342902 lawatha Fri, 04 Sep 2009 15:19:37 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-342902 Thank you for bringing up the bit about granting an extension with the added proviso that the Earnest Money becomes non-refundable in exchange for the extension. We'll definitely put that in if the situation ever comes up again. Our buyer is backing out because he's fed up- is what we've heard through our realtor. His bank had not denied him, it was just taking longer than he wanted to wait. (The paperwork doesn't specify a reason) We have been more than patient and were moving out the day he backed out of the deal. Thank you, Thank you for bringing up the bit about granting an extension with the added proviso that the Earnest Money becomes non-refundable in exchange for the extension. We’ll definitely put that in if the situation ever comes up again.

Our buyer is backing out because he’s fed up- is what we’ve heard through our realtor. His bank had not denied him, it was just taking longer than he wanted to wait. (The paperwork doesn’t specify a reason) We have been more than patient and were moving out the day he backed out of the deal.

Thank you,

]]> By: ARDELL http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-342901 ARDELL Fri, 04 Sep 2009 15:09:33 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-342901 lawatha, Usually if you don't release the $1,000, you don't get it either. In most cases it takes both signatures to release it. I don't know if the buyer's Finance Contingency continued to cover them through the extension. I have seen sellers grant the extension with the added proviso that the Earnest Money become non-refundable in exchange for the extension. I'm not sure why the buyer went to "rescission" vs proceeding. Your comment doesn't say. Is it because they can't get a mortgage, or because they are giving up? lawatha,

Usually if you don’t release the $1,000, you don’t get it either. In most cases it takes both signatures to release it. I don’t know if the buyer’s Finance Contingency continued to cover them through the extension.

I have seen sellers grant the extension with the added proviso that the Earnest Money become non-refundable in exchange for the extension.

I’m not sure why the buyer went to “rescission” vs proceeding. Your comment doesn’t say. Is it because they can’t get a mortgage, or because they are giving up?

]]> By: lawatha http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-342891 lawatha Fri, 04 Sep 2009 04:39:37 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-342891 Maybe this has been covered earlier, but I didn't see it. I'm the seller. Escrow was to close 7/30. Problem with buyer obtaining financing, so contract extended to 8/15. Unfortunately the bank that was funding his loan closed its doors a couple of days before 8/15, so it was extended to 9/7. On 9/2, buyer signed a "Rescission of Purchase & Sale Agreement" which we first heard about and received a copy of, today, 9/3. Unfortunately we put money down on a new apartment on 9/2, and are now out over 1800.00 in costs (non-refundable rent, storage unit rent, gas, septic pump/testing) Buyer is asking for his $1,000 earnest money back. We believe the earnest money should go to us because he kept the sale of our home tied up all Summer and we're out $1800.00 and still have no sale. Any words of advice would be appreciated. Do we fight for the $1,000 or let it go and start all over? Thanks- Maybe this has been covered earlier, but I didn’t see it. I’m the seller. Escrow was to close 7/30. Problem with buyer obtaining financing, so contract extended to 8/15. Unfortunately the bank that was funding his loan closed its doors a couple of days before 8/15, so it was extended to 9/7. On 9/2, buyer signed a “Rescission of Purchase & Sale Agreement” which we first heard about and received a copy of, today, 9/3. Unfortunately we put money down on a new apartment on 9/2, and are now out over 1800.00 in costs (non-refundable rent, storage unit rent, gas, septic pump/testing) Buyer is asking for his $1,000 earnest money back. We believe the earnest money should go to us because he kept the sale of our home tied up all Summer and we’re out $1800.00 and still have no sale. Any words of advice would be appreciated. Do we fight for the $1,000 or let it go and start all over? Thanks-

]]> By: ARDELL http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-339569 ARDELL Thu, 07 May 2009 22:57:12 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-339569 Frustrated, The seller likely can't, unless you agree...but you can't make him move out either. Try proposing "yes, if you pay for the rate difference for the delay". Sounds like you are in a place with attorneys in play...ask your attorney about the seller paying for a rate difference, and how to lock that in fairly, if you agree to the extension. The only places with no time is of the essence clause is usually where each party has an attorney who handles the closing. Sounds like you are playing by "New York Rules". Frustrated,

The seller likely can’t, unless you agree…but you can’t make him move out either. Try proposing “yes, if you pay for the rate difference for the delay”. Sounds like you are in a place with attorneys in play…ask your attorney about the seller paying for a rate difference, and how to lock that in fairly, if you agree to the extension.

The only places with no time is of the essence clause is usually where each party has an attorney who handles the closing. Sounds like you are playing by “New York Rules”.

]]> By: craig http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-339567 craig Thu, 07 May 2009 21:19:03 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-339567 Frustrated -- see my comments 173, 161, 157, etc. If you want legal counsel about a contract in CT, you need to speak with an attorney in CT. Sorry I can't be of greater assistance. Frustrated — see my comments 173, 161, 157, etc. If you want legal counsel about a contract in CT, you need to speak with an attorney in CT. Sorry I can’t be of greater assistance.

]]> By: Frustrated http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-339562 Frustrated Thu, 07 May 2009 18:15:14 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-339562 Craig: We are currently in contract to purchase a house. Per the contract, we are scheduled to close on or before June 30th. We just got an addendum to the contract by the seller requesting an extension of the date to July 31st. The only problem we have with this is that mortgage rates might shoot up in that time frame. We haven't locked into a loan yet as we are waiting to get closer to the 30 day lock period. If we do not sign the addendum, can the seller legally postpone the closing date to end of July? We live in CT so I need to know how binding the contract is on closing dates. We don't have a Time of Essence clause in the contract. Thanks! Craig:

We are currently in contract to purchase a house. Per the contract, we are scheduled to close on or before June 30th. We just got an addendum to the contract by the seller requesting an extension of the date to July 31st. The only problem we have with this is that mortgage rates might shoot up in that time frame. We haven’t locked into a loan yet as we are waiting to get closer to the 30 day lock period. If we do not sign the addendum, can the seller legally postpone the closing date to end of July? We live in CT so I need to know how binding the contract is on closing dates. We don’t have a Time of Essence clause in the contract.

Thanks!

]]> By: Do You Have a Back-Up Loan? | Mortgages Unzipped http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-332928 Do You Have a Back-Up Loan? | Mortgages Unzipped Mon, 26 Jan 2009 23:10:49 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-332928 [...] leverage if the primary lender can’t deliver in the time frame it [...] [...] leverage if the primary lender can’t deliver in the time frame it [...]

]]> By: craig http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-331298 craig Tue, 06 Jan 2009 01:29:47 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-331298 Sorry, D. — I don’t practice law via a blog. You need to consult with an attorney in your area (i.e. one licensed to practice law in NC). Best of luck. Sorry, D. — I don’t practice law via a blog. You need to consult with an attorney in your area (i.e. one licensed to practice law in NC). Best of luck.

]]> By: Ms. D. Hampton http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-331296 Ms. D. Hampton Tue, 06 Jan 2009 00:53:38 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-331296 Craig: Your post was so HELPFUL! I am in North Carolina, and have signed a contract to purchase a home. I feel at this point, I have been given the run around. I was given a verbal proximation of a closing date. I packed, faxed all dox's that were needed, and have all of my money. That closing date was moved, and my agent and lender noted, it was unofficial. Now, I finally was mailed a closing package with a congrat's letter, utilties connection sheet, and items I needed to present to the attorney at closing with a definite date. Today, I found out that the lender may have to change the date again. I was told it was because their office was understaffed and that a lot of homeowners had applied for refi's so my package was kind of pushed to the side. Is there any way that if I do not close on time on this Friday, I can file for a breach of contract, go to another lender, and dissolve my relationship with my agent? He has tried to work hard, but this is stressing me out! I have given my notice at my current resident and am spending more and more money to maintain this household, save to move and reconnect utilities and down payment on the home. How can I get out of this if I don't close on time, and what are the consequences of doing so? Craig:
Your post was so HELPFUL! I am in North Carolina, and have signed a contract to purchase a home. I feel at this point, I have been given the run around. I was given a verbal proximation of a closing date. I packed, faxed all dox’s that were needed, and have all of my money. That closing date was moved, and my agent and lender noted, it was unofficial. Now, I finally was mailed a closing package with a congrat’s letter, utilties connection sheet, and items I needed to present to the attorney at closing with a definite date. Today, I found out that the lender may have to change the date again. I was told it was because their office was understaffed and that a lot of homeowners had applied for refi’s so my package was kind of pushed to the side. Is there any way that if I do not close on time on this Friday, I can file for a breach of contract, go to another lender, and dissolve my relationship with my agent? He has tried to work hard, but this is stressing me out! I have given my notice at my current resident and am spending more and more money to maintain this household, save to move and reconnect utilities and down payment on the home. How can I get out of this if I don’t close on time, and what are the consequences of doing so?

]]> By: ARDELL http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-329356 ARDELL Wed, 26 Nov 2008 19:14:23 +0000 http://raincityguide.com/2006/02/24/a-closing-date-without-a-closing/#comment-329356 "Is it a fair assumption though that the contract has expired because closing didn’t happen when it was supposed to? Just to mention, the “time is of the essence” clause is also on this contract." It might have, but did you set something else into motion by staying and continuing to make payments after that date? Did you cancel the sale in writing because the sale failed on that date? Is there a lease agreement that says you were to continue paying rent beyond the closing date, if the seller couldn't make the closing date, thus setting the expectation that the sale could be delayed if needed? There are many facts "not in evidence" :) If the contract is void, why are you acting like it is still valid in any part past the void date? Have you "extended" the contract by your actions beyond that voidABLE date. I think it was voidable...but you chose not to void it by your actions...based on the very limited info I have to work with. “Is it a fair assumption though that the contract has expired because closing didn’t happen when it was supposed to? Just to mention, the “time is of the essence” clause is also on this contract.”

It might have, but did you set something else into motion by staying and continuing to make payments after that date? Did you cancel the sale in writing because the sale failed on that date? Is there a lease agreement that says you were to continue paying rent beyond the closing date, if the seller couldn’t make the closing date, thus setting the expectation that the sale could be delayed if needed? There are many facts “not in evidence” :)

If the contract is void, why are you acting like it is still valid in any part past the void date? Have you “extended” the contract by your actions beyond that voidABLE date. I think it was voidable…but you chose not to void it by your actions…based on the very limited info I have to work with.

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