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I have a single family home that has been used as a rental property for the last 4 years. My tenants left in January, so I took my time cleaning and making repairs and put the house on the market in March. I told my agent if the house did not sell by July, I would rent it out again. On May 15, I accepted an offer that was $10,000 below what I wanted. The closing date is June 26th. Yesterday, I called the title company to find out what is going on. It seems the sellers loan is not cleared from underwriting. I am quite angry that there has been no communication from my agent or the sellers agent about this delay. I think it is quite presumptuous to think I will just give an extension without being compensated. A coworker of mine wants me to rent her the house until next May. Can I cancel the contract if the buyer does not meet the deadline? I honestly would not have accepted an offer with a July closing.
Your contract tells you whether the deadline is firm, and recourse you may have.
If your agent cannot adequately explain it, you might consider asking an attorney to review it.
The contract states: "CLOSING: All funds and documents necessary for the completion of this transaction shall be placed in escrow with the lending institution or escrow agent on or before 6/26/17 and title will be transferred on or about 6/27/17. "
The contract states: "CLOSING: All funds and documents necessary for the completion of this transaction shall be placed in escrow with the lending institution or escrow agent on or before 6/26/17 and title will be transferred on or about 6/27/17. "
Right.
So, if your agent cannot explain why the contract allows or doesn't allow a delay, and a great many contracts have more language that does allow a delay, have your attorney review and explain it.
I think the funds deposit "...shall be..." may be a firm date. And the closing date is likely an estimated date, a la, "on or about." I.e., "....title will be transferred on or about 6/27/17."
Potential for delay could be construed to be implied there.
And there may be more language modifying the contract conditions.
But, I am not an attorney so I am rambling along and not giving legal advice. Don't act on my input.
Talk to your attorney. You must get legal advice from qualified legal counsel.
It may still close on time. Just because it hadn't cleared underwriting 3 days before closing doesn't mean that it won't be ready in time. You also need to weigh whether you want to continue to rent out the property in the future or if you are done being a landlord. A day or two isn't that big of a deal, but maybe you are upset because it was $10,000 less than asking and are having second thoughts? I mean, it might be a big deal if you were waiting on this closing to close on another property you under contract on, but that doesn't sound like the case here.
I would find out, before you burn bridges or make assumptions what's happening. Call your agent. Buyer could be just a few days out, they could be weeks out, you don't know. You don't HAVE to give an extension, but it would be silly not to if it's just going to be short delay.
What MikeJaquish said. AND I'd add that the contract said "......before 6/26/17 ANDtitle transferred....etc." The andbeing key. Both situations have to exist together. However, you need to wait to see what happens 6/26 to be sure that situation does or doesn't exit.
There is then probably a situation of notice to your agent, so on. And actually 6/27 is so soon after that that it will all be dealt with shortly.
You could have your coworker on notice, though.
Have you paid out much regarding the sale?
You really need to say something about your agent's behavior to her broker and even the state board. It happens this time it all could work out well but suppose you were really counting on there being a sale.
On or before is a hard deadline for the funds being placed in escrow. On or about is actually more favorable to you as the seller since you wouldn't be in breach if the title didn't transfer until the next day, maybe even a second day. But on or before has no built in wiggle room. Unfortunately, you aren't likely to get much info over the weekend but that doesn't mean things aren't going on to get the loan through on Monday. I'm not giving legal advice and your contract will be more explicit about all of the details and whether you can pull the plug if the cannot close on Monday and what your remedies are (you might get to keep the earnest money, but chances are a big chunk of that goes to the agent anyway) so you may be better off being a little more flexible and allowing for an extra couple of days and getting the deal closed and over with.
[quote=goldenlove;48617122]It may still close on time. Just because it hadn't cleared underwriting 3 days before closing doesn't mean that it won't be ready in time. You also need to weigh whether you want to continue to rent out the property in the future or if you are done being a landlord. A day or two isn't that big of a deal, but maybe you are upset because it was $10,000 less than asking and are having second thoughts? I mean, it might be a big deal if you were waiting on this closing to close on another property you under contract on, but that doesn't sound like the case here."
You are correct. I am very unhappy with my real estate agent. Unfortunately I hired an agent who is new to the business and works in real estate part time. She is a friend of my brothers. I had a full price offer the first day of listing, but the buyers got cold feet and backed out after 5 days. My agent never collected the earnest money, so they were able to walk away from the contract. Then she "forgot" to put the listing back up for almost a week. I could go on and on with mistakes made. My choice of real estate agent is costing me thousands of dollars.
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what's happening. Call your agent. Buyer could be just a few days out, they could be weeks out, you don't know. You don't HAVE to give an extension, but it would be silly not to if it's just going to be short delay.
