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Old 12-02-2017, 07:25 AM
 
1,132 posts, read 2,645,360 times
Reputation: 782

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Background: Wrote a contract to build a home with a well-known national builder in end of April and at that time, permitting was going to take 2 months and construction about 6-7 months so were looking at January closing. Home is being built in FL.

We had previously booked X-mas travel plans and are scheduled to be out of the country.

Now, builder is hinting at invoking a contract language letting us know we will be in-default if we don't close on 12/29. I told the builder that we are back on 01/07 and we can close the next business day provided I schedule a final inspection and everything turns out OK.

Why is the builder insisting on closing 12/29? perhaps, financial year end closing? Any recourse for us?

Please don't tell us "hire a lawyer" or "do you have an attorney or real-estate agent".
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Old 12-02-2017, 07:56 AM
 
Location: Central Mexico and Central Florida
6,459 posts, read 2,671,640 times
Reputation: 9017
Probably a tax thing. Why can't you close....everything can be done remotely these days (other than inspection)? Anyone you trust to do the final walk-thru for you??
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Old 12-02-2017, 08:03 AM
 
1,528 posts, read 637,237 times
Reputation: 2062
Quote:
Originally Posted by Tampaite View Post
Background: Wrote a contract to build a home with a well-known national builder in end of April and at that time, permitting was going to take 2 months and construction about 6-7 months so were looking at January closing. Home is being built in FL.

We had previously booked X-mas travel plans and are scheduled to be out of the country.

Now, builder is hinting at invoking a contract language letting us know we will be in-default if we don't close on 12/29. I told the builder that we are back on 01/07 and we can close the next business day provided I schedule a final inspection and everything turns out OK.

Why is the builder insisting on closing 12/29? perhaps, financial year end closing? Any recourse for us?

Please don't tell us "hire a lawyer" or "do you have an attorney or real-estate agent".

Yeah, January is at least another quarter or worse (for the builder) another FY. Financial results for the builder depend on it as do bonuses, meeting targets, etc. for the local guys you're dealing with. Many national builders are publicly traded companies, therefore they need to deliver results quarter by quarter. A few days if it crosses a quarter or a FY for them is a very big deal.

You expect people here on the internet to know what recourse you have without seeing your contract or being lawyers qualified to advise you on your recourse or your options?

"hire a lawyer" or "do you have an attorney or real-estate agent" - see you've given the best answers yourself!
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Old 12-02-2017, 09:34 AM
 
Location: Cary, NC
30,718 posts, read 53,738,940 times
Reputation: 29139
Quote:
Originally Posted by Tampaite View Post
Background: Wrote a contract to build a home with a well-known national builder in end of April and at that time, permitting was going to take 2 months and construction about 6-7 months so were looking at January closing. Home is being built in FL.

We had previously booked X-mas travel plans and are scheduled to be out of the country.

Now, builder is hinting at invoking a contract language letting us know we will be in-default if we don't close on 12/29. I told the builder that we are back on 01/07 and we can close the next business day provided I schedule a final inspection and everything turns out OK.

Why is the builder insisting on closing 12/29? perhaps, financial year end closing? Any recourse for us?

Please don't tell us "hire a lawyer" or "do you have an attorney or real-estate agent".
What is the penalty if you close after the 1st of the year?

$100/Day?
$200/Day?

They can't just keep your deposit and re-sell can they?

IOW, what does your contract demand of you?
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Old 12-02-2017, 01:37 PM
 
Location: Salem, OR
13,642 posts, read 30,841,713 times
Reputation: 11848
Quote:
Originally Posted by just_because View Post
Many national builders are publicly traded companies, therefore they need to deliver results quarter by quarter. A few days if it crosses a quarter or a FY for them is a very big deal.
This is what I was going to say. Pulte, Ryland, Lennar, KB, etc are all publicly traded companies. They are probably getting pressure from up top to close as many homes as they can for the end of the fiscal year.
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Old 12-02-2017, 03:38 PM
Status: "That cotton is blowing" (set 13 days ago)
 
Location: Just south of Denver since 1989
10,572 posts, read 28,014,487 times
Reputation: 6699
Either power of attorney or schedule an appt at the American embassy to sign closing docs.
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Old 12-02-2017, 04:04 PM
 
Location: Columbia SC
7,635 posts, read 6,276,192 times
Reputation: 10325
I did not attend my last two closing. In one the realtor handle it for me. In another, my lawyer did.
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Old 12-02-2017, 04:20 PM
 
8,086 posts, read 7,007,272 times
Reputation: 17592
You do not have to be at the final closing. The simple solution is for the closing papers to be drawn up in advance of your leaving town, and if they are satisfactory, you sign them before leaving town. If the papers are properly prepared, it does not matter what day you sign the papers in advance or at closing. I have had papers signed two weeks ahead of time by the one not being in town for closing signed in Turkey (country), witnessed by the American Ambassador so they would be present for the day of closing. The seller and his wife had flown to Turkey from Libya North Africa, to meet his daughter and her husband for Thanksgiving dinner in Turkey in this one instance.

I had many contracts that were signed prior to closing so they would be there at the closing to complete the sale or purchase fr a client.

Just get the papers prepared before you leave town, and sign them then. The sellers papers may also be signed in advance of closing date.

You can rest assured the Seller in your case, needs the sale to close on the day he is requesting for tax reasons, and to be able to close up all business prior to midnight New Years Eve, for the benefit of his company.

The 29th is the day he needs to have the sale completed, but does not mean you have to be there to sign that day. Just do it before leaving town, and go out of town knowing you will own a home when you return to town.
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Old 12-02-2017, 04:31 PM
 
Location: Saint John, IN
10,033 posts, read 2,876,439 times
Reputation: 11534
Quote:
Originally Posted by MikeJaquish View Post
What is the penalty if you close after the 1st of the year?

$100/Day?
$200/Day?

They can't just keep your deposit and re-sell can they?

IOW, what does your contract demand of you?
Depending on the contract language they most certainly can! If it was me, I’d either ask to close before you leave or give your real estate attorney or realtor the authority (power of attorney) to close for you. Have the realtor or a relative do the final walk through. The builder is trying to avoid closing after the new year for tax purposes.
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Old 12-02-2017, 05:18 PM
 
Location: Finally the house is done and we are in Port St. Lucie!
3,314 posts, read 1,575,582 times
Reputation: 8860
Also, it would be better for you to close before the end of the year that way you can qualify for the Homestead Exemption if this is your main residence.

We closed on our house the 29th of 2016. Moved in the 30th.
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