Seller can't close on time-- buyer have a right to back out?

[Anonymous]

No rent back clause.

Not sure how it works if we need a new closing date.

Even with a higher rate, we will be able to purchase the house... but we may not want to!

We are working with an agent who does not know these answers!

[Anonymous]

I am not a lawyer, but I would say that if the contract stipulates a date, and either party, after signing that contract doesn't adhere to its terms - price, closing date, etc, then that contract is void /unenforceable.

Your agent won't want you to back out. Get an unbiased POV.

[Anonymous]

Why won't they close in time?

[Anonymous]

Anonymous wrote:I am not a lawyer, but I would say that if the contract stipulates a date, and either party, after signing that contract doesn't adhere to its terms - price, closing date, etc, then that contract is void /unenforceable.

Your agent won't want you to back out. Get an unbiased POV.

There's a (HUGE) difference between being in breach and the contract being void. OP take a close look at the contract and check with a lawyer if you don't understand.

[Anonymous]

Visit a real estate lawyer for the answer. In general, if the postponement is not going to cause you any damages then it doesn't make a lot of sense for you to make a big deal out of this - unless you are looking for an excuse to back out. If it is going to cause you damage (long delay, higher rate) then you may have reason to fight them. Obviously it is unacceptable for them to put off the closing indefinitely. You should contact the seller's agent to find out what is going on.

[Anonymous]

Anonymous wrote:I am not a lawyer, but I would say that if the contract stipulates a date, and either party, after signing that contract doesn't adhere to its terms - price, closing date, etc, then that contract is void /unenforceable.

Your agent won't want you to back out. Get an unbiased POV.

Why would you comment on contract law after offering the caveat that you're not a lawyer?

[Anonymous]

OP - I don't understand why you'd want to back out. Presumably, you wanted to buy the house because it was "the right house for you". I find it hard to believe that you'd be willing to walk away from it just because the sellers can't close on time. We just went through this - as buyers. We couldn't close on time, delayed by 2 weeks. It was not thru any fault of ours, rather the lender who kept requesting last minute items.

I just find it curious that you're willing to walk away from a home you will be living in for many years because of a short delay. penny wise, pound foolish.

something else is going on. I think you found another one you like better and are using this as an excuse.

[Anonymous]

Anonymous wrote:OP - I don't understand why you'd want to back out. Presumably, you wanted to buy the house because it was "the right house for you". I find it hard to believe that you'd be willing to walk away from it just because the sellers can't close on time. We just went through this - as buyers. We couldn't close on time, delayed by 2 weeks. It was not thru any fault of ours, rather the lender who kept requesting last minute items.

I just find it curious that you're willing to walk away from a home you will be living in for many years because of a short delay. penny wise, pound foolish.

something else is going on. I think you found another one you like better and are using this as an excuse.

I thought that too until someone brought up the fact that rates are rising. That's not immaterial.

[Anonymous]

Anonymous wrote:No rent back clause.

Not sure how it works if we need a new closing date.

Even with a higher rate, we will be able to purchase the house... but we may not want to!

We are working with an agent who does not know these answers!

Your agent has a boss. Contact her/him if your agent is not willing to even consult her/his broker.

[Anonymous]

Anonymous wrote:OP here. We do have a settlement date in the contract. This is for a home in VA (if that makes any difference). If the seller wants an extension, do we need to accommodate them? May prefer to back out than wait indefinitely. Thoughts?

How long of an extension to they need? Can you accommodate them for this amount of time? And what is the reason for the extension? And how much inconvenience is it to you? All of these are relevent questions.

If it is just an extra business day or two, then you determine what this will cost you (perhaps fees for changing moving companies, hotel stays for your family, transportation costs if you have to make last minute changes, etc) and if at all possible, you accommodate them. If you cannot accommodate them, for example your rate lock expires or your moving company is scheduled and you cannot change the delivery date, etc) then you do not agree to the change and you force them to adhere to the date.

Ultimately, however, it would be far better for you to consult with a real estate lawyer in the jurisdiction of the sale to determine your legal rights and penalties in this situation than to get possibly completely wrong information on an anonymous discussion board. A real estate attorney will likely only cost you a couple hundred dollars for a consultation on the issue. And in this case, do not ask your realtor for a recommendation because your realtor is part of the problem here.