Please help, seller wants to postphone closing date (mortgage, mortgage, lawyers)

[newbiehouse]

We just bought a house and was supposed to close this week. However we just heard from the seller that they want to push the closing date to the end of month. However our rate locking period is untill next week. With the recent rate shooting up, we will end up paying a lot more if we can not close with the original agreed date. The seller did not give us any reason for why they need to push the date. They actually have moved out from the hosue. We talked to our lawyer, and we were told by New York law the seller can do this even without a reason. As matter of fact, we kind of think the seller could be doing this on purpose because the seller bought the house during the peak time and they lost quite some money by selling the house to us, so they somehow have put the anger toward us during the whole process. My question is, in the current situation, what can we do to protect us from losing the locked rate and end up paying a lot more money. Our lawyer told us there is nothing we can do. We can not threat to sue the seller for damage as well even if they did this on purpose. Is this true? The law just does not protect buyer at all in this situation? We were also told that if we walk away even after agreed closing date (which we really want to) we will lose our Ernest Money (which is a lot). Is that true? Can we walk away after the agreed closing date without losing EM? Please help!

[bluedog2]

Unfortunately,from what I know about real estate law,your lawyer is correctly explaining the situation and you shouldn't be looking here for a different opinion.It doesn't help you in your situation but you would be able to delay the closing too if you had to, even if it wound up causing a hardship for the seller.Each side has the option of doing that.
You may well be in danger of losing your deposit if you walk away at this stage because the two important criteria that would have given you an out have probably been met.Usually contracts are subject to the buyer obtaining a commitment for a mortgage in a certain amount.Sounds like you got that so legally you must consummate the deal or suffer the penalty.
The only way the contract you sign becomes invalid is if one of the parties dies.
Sounds like your best bet may be to appeal(or have your lawyer appeal) to their sense of fairness or their lawyers sense of fairness.
There is a thing called a "time is of the essence notice" which you could ask your lawyer about but I am unsure whether it could be invoked in this circumstance.

[misplaced1]

It was my impression if the seller was not ready to close on specified date we could call the deal off. Did your attorney say anything about that?

[chet everett]

They have a screw loose -- if the seller has vacated the premise there is NOTHING for them to gain by delaying closing.

They will continue to have to pay their ownership costs on an empty house.

If they needed a place to live I would say it makes sense to allow them to RENT from you, but an empty house is going to cost them insurance, utils, mortgage et cetera.

I would worry about their sanity...

If you close as scheduled they get the agreed to amount and can move on with lives. There has to be something else going on...

[Silverfall]

Originally Posted by bluedog2

Unfortunately,from what I know about real estate law,your lawyer is correctly explaining the situation and you shouldn't be looking here for a different opinion.It doesn't help you in your situation but you would be able to delay the closing too if you had to, even if it wound up causing a hardship for the seller.Each side has the option of doing that.
You may well be in danger of losing your deposit if you walk away at this stage because the two important criteria that would have given you an out have probably been met.Usually contracts are subject to the buyer obtaining a commitment for a mortgage in a certain amount.Sounds like you got that so legally you must consummate the deal or suffer the penalty.
The only way the contract you sign becomes invalid is if one of the parties dies.
Sounds like your best bet may be to appeal(or have your lawyer appeal) to their sense of fairness or their lawyers sense of fairness.
There is a thing called a "time is of the essence notice" which you could ask your lawyer about but I am unsure whether it could be invoked in this circumstance.

I am always so thankful that I do not practice real estate in NY when I read things like this...

In Oregon you can't extend the closing date at whim. It has to be agreed upon by both parties otherwise the seller is in breech of contract and subject to damages. Why have a contract if the terms don't mean anything?

[LynnKK]

Sounds also like this is something between you and your lender. What would it cost to extend your lock (and it does always come down to money) up to and including the new date of closing? Would your seller be willing to pay this for your accommodating them? If not...they are in breach of contract in Illinois, but New York is a bit different.

[DonnaReed]

Originally Posted by newbiehouse

We just bought a house and was supposed to close this week. However we just heard from the seller that they want to push the closing date to the end of month. However our rate locking period is untill next week. With the recent rate shooting up, we will end up paying a lot more if we can not close with the original agreed date. The seller did not give us any reason for why they need to push the date. They actually have moved out from the hosue. We talked to our lawyer, and we were told by New York law the seller can do this even without a reason. As matter of fact, we kind of think the seller could be doing this on purpose because the seller bought the house during the peak time and they lost quite some money by selling the house to us, so they somehow have put the anger toward us during the whole process. My question is, in the current situation, what can we do to protect us from losing the locked rate and end up paying a lot more money. Our lawyer told us there is nothing we can do. We can not threat to sue the seller for damage as well even if they did this on purpose. Is this true? The law just does not protect buyer at all in this situation? We were also told that if we walk away even after agreed closing date (which we really want to) we will lose our Ernest Money (which is a lot). Is that true? Can we walk away after the agreed closing date without losing EM? Please help!

I'm not so sure I believe your attorney that a seller can change the closing date on a whim and you have to like it or lump it.
Nor would I have faith in an attorney who says, "Oh well, that's that."

Especially when you're losing your rate and will pay more.

I'd research that one further.

[DonnaReed]

Originally Posted by bluedog2

Unfortunately,from what I know about real estate law,your lawyer is correctly explaining the situation and you shouldn't be looking here for a different opinion.

She should definitely be looking for a different opinion, it sounds ridiculous. Once you give up your E money you close when the seller says so, just follow along, go with whatever changed dates, and be ready when the seller says so?

I don't think so.,

[Austin-Willy]

The seller would not be able to do this in Texas, at least not in most cases, and not for no reason at all. Sounds fishy to me.

[MikeJaquish]

Originally Posted by newbiehouse

We just bought a house and was supposed to close this week. However we just heard from the seller that they want to push the closing date to the end of month. However our rate locking period is untill next week. With the recent rate shooting up, we will end up paying a lot more if we can not close with the original agreed date. The seller did not give us any reason for why they need to push the date. They actually have moved out from the hosue. We talked to our lawyer, and we were told by New York law the seller can do this even without a reason. As matter of fact, we kind of think the seller could be doing this on purpose because the seller bought the house during the peak time and they lost quite some money by selling the house to us, so they somehow have put the anger toward us during the whole process. My question is, in the current situation, what can we do to protect us from losing the locked rate and end up paying a lot more money. Our lawyer told us there is nothing we can do. We can not threat to sue the seller for damage as well even if they did this on purpose. Is this true? The law just does not protect buyer at all in this situation? We were also told that if we walk away even after agreed closing date (which we really want to) we will lose our Ernest Money (which is a lot). Is that true? Can we walk away after the agreed closing date without losing EM? Please help!

Pay very close attention people:
"We talked to our lawyer, and we were told by New York law the seller can do this even without a reason."

What else does anyone, meaning anyone who is not licensed to practice law in NY State, have to counter the attorney's opinion?
What else, that is, that would be relevant or helpful to a NY state resident, in a NY State jurisdiction?

FWIW, either buyer or seller could pull the same stunt in North Carolina, and for up to 10 days there would be no consequence, and the non-delaying party could not terminate until 30 days had passed.

newbiehouse,
If you do not trust your attorney, get off the internet and find another NY attorney and get another qualified legal opinion.
All you have here is input from people who have not seen your contract and mostly do not know your local laws and customs.