Cancelling A Contract (tenants, documentation, mortgage, mortgage)
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I’m under contract to buy a house. I have a commitment letter from the bank. The problem is the seller and I can’t agree on the closing date. The seller has tenants and has to get them 60 days, this was agreed to at the beginning. The seller went on vacation and did not give notice yet and the state that I live in it is required by law to issue notice at the end of the month (per my lawyer). So now the seller wants to change the closing date to September. My commitment letter will expire and I have to resubmit documentation (per my mortgage broker). My question is can I cancel the contract without losing my deposit and I’m I legally obligated to purchase it if we can not agree on a closing date.
Closing dates can slip for good (or not so good) reasons. If time matters to you the offer should have been written so this is included (I think the legal language is "time is of the essence").
You already mentioned your attorney so he or she is the one to ask about this. However, if you want the property and have the option to wait, you may have an opportunity to make this work for you. Presumably, the seller wants to sell you the property. Tell the seller that you will amend the contract to close at a later date but you expect to be compensated for the hassle. Perhaps a price reduction or credit, maybe a new paint job or carpet replacement, whatever you think it's worth to you. Just be prepared to have the contract fall apart if they refuse. Although your attorney is the best source of info, it would be hard to see a circumstance where the seller's default would result in you losing your deposit.
Sure. We do leasebacks all the time. On my higher end houses, my sellers naturally don't want to start packing and leave until they have cash in the bank, so we'll work a deal where the seller closes and leases the house back for 30 days.
Sure. We do leasebacks all the time. On my higher end houses, my sellers naturally don't want to start packing and leave until they have cash in the bank, so we'll work a deal where the seller closes and leases the house back for 30 days.
This would be the same thing, just with tenants.
I think it would be entirely different myself. What happens if the tenants decide they aren't leaving and you are only getting them out through an eviction? Or what happens when they start demanding items be fixed in the house? Or what happens whey they trash the house?
No thanks.
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