However, keep in mind that you can ask for significant concessions if the closing is delayed over and over or if the seller needs a long occupancy period. In Texas, and they take a long time. New Member Mark as New; Bookmark; Subscribe; Mute; Subscribe to RSS Feed; Permalink; Print; Email to a Friend; Report Inappropriate Content 05-28-2014 07:30 PM 05-28-2014 07:30 PM. Contract says buyer may enforce specific performance seek such other relief as may be provided by law or both. Your realtor calls the realtor for the Seller to canvas the possibility of an extended closing…. 11 Replies. The buyers could not extend the closing date for a number of reasons, so everyone (friends of the seller, the other agent & myself) all pulled together and managed to help the seller get packed, closed and moved on time. Delays in closing can also increase the odds that the other party will refuse to extend and walk away from the deal. Often, the language states that the parties agree to close "on or about" a certain closing date. A delay on that front can delay closing on the sale of their current home. However, extending escrow is a matter of negotiation between buyer and seller. Indulging her passion for financial fitness and real estate investment savvy through the written word on a full-time basis since 2010, author Jodi Thornton-O'Connell takes the complexity out of buying, renting and investing in California property. Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isn’t always possible. 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. Minimize the risk of delay by promptly getting all your financial information to your lender as soon as it is requested. Of course thereâs a lot to think about, including inspections and contingencies, but you might also think about how long the seller has to move out. In general, a seller would be wary to extend a closing date for very long, unless they are absolutely certain of the reasons or need to extend. I've had to incur extra costs with paying to extend my mortgage rate lock and my lease. As a buyer, you may be just fine allowing extra time, especially if you get time for additional inspections or need time to settle you mortgage. Closing dates can get postponed for any number of reasons including lender delays, repairs to the home taking longer than expected or the seller's new home transaction having a setback. Some states’ realtor purchase agreements include a provision which allow an automatic closing date extension of one to two weeks for lender-related requests. For example, on a house closing date, the following few events occur: 1. 06-08-2009, 03:26 PM LynnKK : Location: Illinois. Contact us for more information today. 718 posts, read 1,880,761 times Reputation: 974. If the parties cannot come to a compromise, the buyer can ask a court to step in and modify the contract to extend the time a buyer might need to obtain financing, particularly if the buyer lost financing due to the seller's breach. We expected a delay and asked the Seller for an extension. This can cause potential problems when one party is ready to close and the other is not. While the buyer has a right to request extension of closing date, a seller has the right to oppose or refuse closing extension. However, as timing doesn't always go according to plan, the buyer and the seller have a right to propose an extension to the contract or any of its provisions, such as the deadline for mortgage loan approval or inspections. What Happens If the Mortgage Company Sends Funds for Closing a Day Late? In competitive markets such as San Francisco, it's not unusual for appraisers to be in high demand, sometimes causing delays if the preapproval and underwriting procedures that need to be completed before the appraisal are lagging. You could offer up more non-refundable EM to get them to extend if you are serious about the purchase and feel confident about the lender. If you decide to cancel a deal when the home is already under contract, you can be either legally forced to close anyway or sued for financial damages. One of the ways you can extend your closing date is if the seller finds a mistake like a title defect. Most buyers and sellers will agree to extend the closing date by a couple of weeks, if necessary. A lot can go wrong. The loan is with the Veterans land board. Sellers might also cause a delay if selling is contingent upon obtaining suitable housing or buying a new home. It is important for attorneys and brokers to remember these extra 30 days, when agreeing to extend closing dates. in other words he is now regretting his decision. 2. 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. Buyer may unilaterally extend the time for Closing for a period up to thirty (30) days, provided Buyer provides Seller written notice specifying the reason for extension of Closing no later than ten (10) days prior to the date previously scheduled, and provided payments to Seller are made of Two Thousand Five Hundred ($2,500.00) Dollars per day for each additional day required for extension. Once your offer is accepted, how much time do you and the seller have to prepare for closing and moving? 2. One of the ways you can extend your closing date is if the seller finds a mistake like a title defect. Delays in closing aren't always the buyer's fault. We just closed on our house. It can be done. With most cases, a federally backed loan can close in 30 days. Each party is required to perform specific contractual duties by a specified date or cancel the contract. 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 timelines in a real estate contract are explicitly spelled out to all parties involved. Mostly, real estate representatives of both the parties ensure that closing date extensions are agreed to so that the transaction moves towards finality and benefits both the parties. If you want to have peace of mind during your home transaction, be sure you work with a skilled realtor like a Clever Partner Agent. from Houston, Texas. The seller did not sign the amendment. 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. Normal closing times . It has to be agreed upon by both parties otherwise the seller is in breech of contract and subject to damages. The type of mortgage and the lender have the most impact on how soon closing occurs. 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