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Old 10-17-2016, 05:19 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 22 days ago)
 
Location: Cary, NC
43,176 posts, read 76,826,386 times
Reputation: 45533

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Quote:
Originally Posted by pegotty View Post
This was something that was coming up frequently in my brokerage so the BIC called the NCREC to clarify and then it was discussed as a group. There was definitely a lot of disagreement among the powers that be, and I think it could be something that could go either way in a courtroom. And it may be the case that the NCAR has made a statement that disagrees with the NCREC but I think there is enough ambiguity that it's important to at least be aware of that ambiguity when advising about that clause.
But, you specified a possible court remedy, and what was the discussion regarding additional penalty for the buyer's broker discussed, or anything beyond buyer's forfeiture of the EMD as liquidated damages?

IF the buyer and agent are acting in good faith at contract, and the buyer is able to close within the contract deadline with an alternate funding scheme, who is harmed?
Note: I don't take delayed closings lightly, but for various reasons they happen.
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Old 10-18-2016, 11:30 AM
 
Location: Raleigh, NC
2,541 posts, read 5,465,079 times
Reputation: 2602
Quote:
Originally Posted by MikeJaquish View Post
But, you specified a possible court remedy, and what was the discussion regarding additional penalty for the buyer's broker discussed, or anything beyond buyer's forfeiture of the EMD as liquidated damages?

IF the buyer and agent are acting in good faith at contract, and the buyer is able to close within the contract deadline with an alternate funding scheme, who is harmed?
Note: I don't take delayed closings lightly, but for various reasons they happen.
Just imagine the worst case scenario, that the loan is delayed as much as two weeks due to the loan (allowed in the contract). And a seller who thought they had agreed to a cash sale and potentially accepted a lower offer because they thought they were avoiding any potential delays due to the loan. If the seller is depending on the cash from closing and doesn't realize a financing delay is possible, he might put himself into a riskier buying contract because of the relative safety of what he agreed to. Or he might even lose out on a deal that he had hoped to pay cash for because he didn't get the cash when expected. It just opens up a whole can of worms...
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Old 10-18-2016, 11:32 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 22 days ago)
 
Location: Cary, NC
43,176 posts, read 76,826,386 times
Reputation: 45533
Quote:
Originally Posted by pegotty View Post
Just imagine the worst case scenario, that the loan is delayed as much as two weeks due to the loan (allowed in the contract). And a seller who thought they had agreed to a cash sale and potentially accepted a lower offer because they thought they were avoiding any potential delays due to the loan. If the seller is depending on the cash from closing and doesn't realize a financing delay is possible, he might put himself into a riskier buying contract because of the relative safety of what he agreed to. Or he might even lose out on a deal that he had hoped to pay cash for because he didn't get the cash when expected. It just opens up a whole can of worms...
"Liquidated damages."
The lid on the can of worms.
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