Closing Date Problems

[rprader]

I have a client that changed the closing date on a contract and did not make anyone aware of the changes. We all moved forward with the assumption that it would close early July, but the lender informed me that the closing would be for late July... Since the seller rep, and seller kept moving forward with the requirements for them to close could there be an applied contract.

Has anyone ever had this problem? The sellers agent is telling the sellers to put the home back on the market, but the buyer is already approved except for they were waiting on the appriasal.

[RonnieG]

If your client (presumably the buyer) changed the contract after it was already accepted and signed by the sellers, the change should be of no effect. The version signed by all parties is the one that applies. If they changed the date before it was submitted to and signed by the sellers, and nobody caught it, shame on everyone else involved for missing it.

[Discover Davis Homes]

Sounds like your clients are most likely out of compliance of the terms of the contract and the seller has the right to cancel the contract. Why hasn't the appraisal been completed? Often a lender will wait and order the appraisal after the rest of the borrower's loan/credit has been approved. Sounds like you may have needed to be in closer contact with your buyer's lender and may have been able to anticipate some delays and prepared the sellers for this earlier in the process.

[rprader]

Yes, the apprasial has been ordered and the bank should receive it back by Monday. I spoke w/ the lenders rep this afternoon, and they said once they get the full approval they will contact the title company with the lending packet to schedule the exact closing date (which is a later date of July according to the buyers changes). I do not represent the sellers, I did inform the sellers agent of the change in the contract and he contacted the seller this morning. First, he told me that she wasn't going to wait that long and that we wanted her closed before hand. During my converstation w/ the selling agent the seller called into his office. So I let him go to speak w/ his client. So, I called them back to see if the seller was withdrawling the offer to purchase from my buyer. The selling agent informed me that the seller is to unhappy w. the fact that she changed the date to a later date in the contract. But, she is allowing them to complete the appriasal to see what the lender set the closing date for. This leaves me in the air and sick to my stomach, because to me this mean the seller may still may stay no I think or would that be considered and expressed acceptance of the change?

[John Allen]

The buyer does not have any ground to stand on here. Both parties needed to agree to extend the closing date. An addendum should have been prepared with the new closing date.

Does the buyer have a deposit on the property? Once the original closing date passes, the buyer may find themselves in default.

[Malok]

While its a completely bogus way of doing things and the buyer has no leg to stand on, realistically - what should the sellers do?


Will they get another offer that will close by late July? In many of today's real estate markets, the answer would be no.


Unless they are one of the few lucky ones in a hot market, or the sellers are financially sound enough that they don't have to sell and want to take a stand on principles - letting the transaction happen, even if it is a couple weeks later, is probably the prudent move.

[rprader]

The buyer did put earnest money into the trust, then she agian is bringing a large sum of as a down payment for her loan. I did draw up the addendum releasing the home inspection contigency, by-law review contingency, we added an area for the seller repairs she made; that stats she is agreeing that see indeed had the range, dishwasher, and a/c unit repaired. Then, we also added that the closing should be on or before July 25th. This has been sent over to the buyer to sign and then we are sending it over to the seller to agree upon.

[rmasse10]

The big question is how did they even change the date without anyone knowing about it. It doesnt matter what they did but I am curious how they did it. I am going to assume that they probably contacted their bank and let them know that the date had changed, let me know if it is something else. Sounds like you may have a renegade on your hands.

Technically after the closing date passes, the buyer is out of contract. The seller can choose to do a number of things but my guess is that they will allow the transaction to occur at a later date but don't be surprised if they start to show the home again

[TrophyHomes]

Just prepair an addendum changing the closing date to late july so its all legal. You may be putting earnest money in jepordy.

[Puyallup Agent]

rprader, How exactly did the buyer accomplish changing the closing date? Did they write it into the contract or just call the lender?
You've already received solid advice on how to proceed from here, I'm just curious about the details and motivation.