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My saga continues. We have a contract for a closing on X date. We all agreed that we'd vacate the property 7 days later. The buyer has a financing contingency that allows them up to the closing date to get their finances in line. At this point - that's not going to happen. So they want to move the closing day back by 7 days - and still have us move out by the same day - now that exact closing day. IF we agreed - we have no recourse if they bail at the closing table - AND we would have already moved out.
But if they need to request that the closing date change - wouldn't that require the original contract - with the original closing date on it - also change? Or even be ripped up and rewritten fresh? If so - that tells me that we could either kill the deal or ideally demand another 7 days to move out. I don't mean to sound irate - both we and the buyer are very nice people. Our realtor is keeping us apart, and I smell something funny - like she may have told them something we don't know, and vice versa. She's seeming to do everything to keep us and the buyer apart.
Ideally - I'd much rather get some assurance (and insurance) from the buyer that they are committed to making this deal happen 100%. Then we'll move out tomorrow and can close whenever they get their stuff in line.
They were originally willing to give you a week to vacate after closing and now want an extention of a week and for you to vacate on closing. Do I have this right?
Now they need an extra week to get the financing together, assuming it can be done in a week and now want you out by closing. I understand your risks. What's their motivation?
Has anyone ( you or your agent) contacted the buyer's lender to find out what really going on and if 7 days is realistic? Have they been pre-approved ( asset and income verified)?
what does your contract say? our contract reads that a closing date can change up to x days due to mortgage financing issues (and title issues needing to be cleared for the seller).... have you talked to their lender? Are they approved and the lender just needs a little more time for closing? Financing has been very difficult these days.
shelly
p.s. Mom, you and I posted at the same, : ) good minds think alike.. what does the mortgage company say?
You should be working this out with your agent. If you need additional advice then meet with the agent's managing broker. They know your contract and can advise you for your situation.
Regarding a change to the contract, that usually involves writing up an addendum with the changes to be signed off by both parties. No need for a new contract. If either party does not agree and does not sign, then the existing contract stands as is.
I was going to third the advice to talk to the lender and find out if 7 days is realistic. Underwriting is very difficult these days, so I can't imagine 7 days will get you a whole lot, especially this time of year.
It varies from state to state, so you should be getting your advice locally.
Heck, here in North Carolina, a party may close up to 30 days after the contract date, and there is not even a penalty until the 11th day after the agreed date.
Prior to that standard being instituted a couple of years ago, a closing within 365 days of the agreed date was acceptable to the courts.
So, definitely get local advice, relevant to West Virginia.
And if you do not have faith in your agent, speak with the managing broker, as rjrcm said.
Last edited by MikeJaquish; 12-16-2009 at 08:02 PM..
Sadly, I think our agent may be playing both sides against the middle. I didnt mention it before - the buyer doesn't have an agent. They called the sign on the street. So our agent doesn't represent them - and somehow it's legal - and she gets the full commission.
But she was the one who "sold" them on our house. I have reason to believe she may have pressured them to buy stating that we had a tight timeline, which we don't. She told us they have reason to move in quickly - but I don't know if that's true. We're being forced into an unreasonable timeline and being kept in the dark. The response to every question is "don't worry about it - it will be OK."
I do believe the buyer really wants our home, and we of course want to sell it. It appraised low - and they decided to make up the difference anyway. I don't beleive it's the buyer who is playing with the timeline - I believe the agent is forcing the timeline so it lines up with her stories (that both the buyer and us may have different versions of). This theory is strengthened by the fact that she flipped out when we asked if we could speak to the buyer. I just wanted to see if they wanted me to paint a wall or if they were repainting.
Our original listing agreement with her expires just after the original closing date - not sure if that's any kind of factor.
Everything is negotiable. It's not the buyers fault it appraised low and likely nobody is quite sure, like yourself, how it will work out. The contract wording and local law will determine what you can do. I hope it works out.
The situation you are describing, while it may or may not be unreasonable, is actually BY FAR the most normal situation in my area, and from what I read on these forums, in most areas around the country. In most places, you are expected to be vacated on closing day. The buyer owns the house at that point, and if you are still living there, you are basically a renter at that point, with all that that entails.
Quote:
I don't beleive it's the buyer who is playing with the timeline - I believe the agent is forcing the timeline so it lines up with her stories (that both the buyer and us may have different versions of). This theory is strengthened by the fact that she flipped out when we asked if we could speak to the buyer. I just wanted to see if they wanted me to paint a wall or if they were repainting.
I can't think of any reason why the agent would want to push back the closing. The agent wants the deal done, so they can get paid. The longer it goes on, the more likely it is to not happen. I'm not sure what you mean by "lines up with her stories"...trust me, getting the deal closed is going to outweigh any stories.
As for not wanting you to talk to the buyer, I refer to my above statement. The agent wants the deal to close. Many times, as soon and a buyer and seller talk, emotions start to run high, someone says something they shouldn't, and suddenly the deal falls apart. That's why its best to have your agent act as a buffer in all negotiations. Yes, some people can handle it, and maybe you can, but maybe your buyer can't, and by the time you find that out, it could be too late.
As for your original question, the contract doesn't need to be rewritten, just amended. You don't have to agree to the new terms, but if you can't come to a new agreement, the deal could fall through. I think with what your original agreement said, it would be reasonable to ask for at least 2 days after closing to get moved.
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