Reply to A question for agents and others re the legal position as it pertains to the closing date

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Reply to "A question for agents and others re the legal position as it pertains to the closing date"

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[quote=Anonymous]OP here: I did not mean to cause such a fracas when I asked for advice.

First, this situation pertains to a close family member, not me. The reason my OP was so specific is because there is an addendum which offers an out but the sellers did not want to use it if it could be avoided. There have been several back and forth communications on this and other issues.

Based on the advice of a RE attorney, this morning the seller's agent notified the buyer's agent that the contract will be voided if they don't close on the date specified in the contract. The buyers have also been notified that the sellers will not vacate the house until after the close based on the addendum: the specific date for vacating the house needs to be agreed.

The buyers would not agree to a rent-back provision when the contract was signed. I advised the family member to put in a "best efforts" clause which is rarely used in RE contracts but which is sometimes used in commercial transactions. I am not an attorney but I have worked in M&A where this clause is occasionally used. This was a multiple bidding situation and the buyer agreed to the "best efforts" clause on the advice of their agent.

It is a somewhat high-end property and subsequent to the contract being ratified two backup offers were received for quite a bit more than the contracted price and one of the offers has no contingencies. If the contract is voided, the backup offer without any contingencies - which includes a rent-back provision - will take effect. [/quote]

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