Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Better yet figure out what's the holdup, otherwise they will threaten to sue again and keep asking for more time.
Yes, this too.
I once had a friend who pulled out thinking the buyer was bluffing when he threatened to sue over something that was somewhat petty. Well, the buyer wasn't bluffing and tied my friend up in court for six months and won a minimal judgement against my friend. Meanwhile, the property wasn't allowed to be sold the entire time.
Buyers were to close the PURCHASE OF MY CONDO on May 15, but then sent me an extension till 23rd. I agreed. Now, they’re still not ready and want to extend again till 30th of May, because when I called escrow they said buyers don’t have loan documents yet or didn’t provide. Can I get out of the deal? If so, buyers might sue us, they confirmed that to my agent. The reason being that HOA delays providing docs. Since HOA is technically on my side, I could be sued.
Time is of essence is present in the agreement.
If they agreed to close with Time Being of the Essence you most likely didn't agree to any contingencies. In which case the 23rd is considered a Law Date and you can hold them in default. They will most likely lose their deposit as liquidated damages. If I were you I would give a short extension but ask them to release the downpayment to you and make sure it's Non-Refundable.
Is there a problem with the loan and this is a stall? Perhaps an underwriting issue. Tell your agent you want proof their loan is in good standing and check with HOA to verify regarding HOA documents. An extension of a few days or a week even can happen but you’re almost approaching half of a new escrow period. Unless there’s a major issue buyers shouldn’t have a problem releasing deposit to you if they can’t close after this last extension .
Buyers were to close the PURCHASE OF MY CONDO on May 15, but then sent me an extension till 23rd. I agreed. Now, they’re still not ready and want to extend again till 30th of May, because when I called escrow they said buyers don’t have loan documents yet or didn’t provide. Can I get out of the deal? If so, buyers might sue us, they confirmed that to my agent. The reason being that HOA delays providing docs. Since HOA is technically on my side, I could be sued.
Time is of essence is present in the agreement.
Can anyone tell me why the seller could be sued in this case if they don't provide an extension? I can understand being sued if you sign it and fail to honor what you signed. What ELSE is being breached that allows the buyer to sue?
Can anyone tell me why the seller could be sued in this case if they don't provide an extension? I can understand being sued if you sign it and fail to honor what you signed. What ELSE is being breached that allows the buyer to sue?
No.
No one can tell you why without reading the contract and recognizing local laws.
Can anyone tell me why the seller could be sued in this case if they don't provide an extension? I can understand being sued if you sign it and fail to honor what you signed. What ELSE is being breached that allows the buyer to sue?
As Mike said, we have no idea, without seeing the particular contract.
I will say it's not a situation where suing would be a typical buyer remedy.
Have your agent talk to both the lender and the HOA and confirm that the holdup will be cleared up this time, if you give one more extension.
This.
Since the escrow company said it was the loan documents that were missing and now it supposedly missing HOA documents, contact the HOA yourself to see what the problem is, if there is one.
Not sure why they could sue you if the deal fell through because they didn't get their end lined up.
Is there a problem with the loan and this is a stall? Perhaps an underwriting issue. Tell your agent you want proof their loan is in good standing and check with HOA to verify regarding HOA documents. An extension of a few days or a week even can happen but you’re almost approaching half of a new escrow period. Unless there’s a major issue buyers shouldn’t have a problem releasing deposit to you if they can’t close after this last extension .
Quote:
Originally Posted by GotHereQuickAsICould
This.
Since the escrow company said it was the loan documents that were missing and now it supposedly missing HOA documents, contact the HOA yourself to see what the problem is, if there is one.
Not sure why they could sue you if the deal fell through because they didn't get their end lined up.
Quote:
Originally Posted by Albuquerque101
If you get the sense that they will actually be able to close on the 30th, you are much better off giving them the extension. If you pull out (even if you aren't sued) it is going to take much longer than that to get another buyer and then close with that buyer.
This happened with us, with the house we just sold. Buyers asked for an extension for closing - then they still did not meet the date they had requested for the extension - and their agent was not communicating with our agent. Apparently there was a problem with underwriting their loan - a piece of paperwork needed, something about verifying a 401K loan being paid off.
We weighed the consequences of trying to start over again with one of the other offers - the question of whether or not we would have been able to retain our buyers' earnest money if they didn't close didn't enter into it - we just wanted it FINISHED already. In other words, we wouldn't have wanted to start from scratch even if we would have made $20+ for the trouble -and we weren't sure if we would have been able to claim their deposit anyway.
Our agent did talk about asking them to release some funds to us from the earnest money deposit (nonrefundable if they didn't close) but that never happened either. We felt like we were in the dark - with no communication and no way to predict what was happening.
We ended up talking to one of our escrow agents - who talked to the buyers' lender to find out if they were really able to close and just needed more time to get everything lined up -- or -- if closing was never going to happen because their loan was not going to happen after all and they were just stringing us along.
The escrow agent sorted it out, assured us that their loan looked good and that it was just a piece of paper they needed - and then once everything was signed, she arranged it so the buyers would hand-carry the loan documents to the county office for recording same day - so we ended up closing several days beyond the extra time they had already requested but at least we closed and didn't have to start over - and also closed before the next months' mortgage payment was due.
"Wigged" doesn't even begin to describe it - not knowing what was happening for so long.
So yeah, do whatever you can to find out if the buyers intend to actually perform and close - and do whatever you can to get the documents they need into their agent's or the lender's hands.
I, too, do not see how they can sue YOU because they don't have their ducks in a row after all this time.
About the HOA documents. That's a corporation. There's laws and bothersome stuff like that. All the HOAs I know of have specific time frames by law for ordering the documents, getting the documents out, how long the buyer has to read them and give approval.
And they are allowed to be electronically sent in areas I know of. So making copies and getting to the PO is not an issue in these cases.
Have the buyers agree to leeting your agent talk to their lender and get reassurance that loan will close.
Not this ^. Maybe have the agent talk to the HOA Most agents have no idea regarding the lending process, compliance or responsibility. The process has changed, most agents have not.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
