Delay in closing escrow

What is the name of your state?

California


We currently sold our house and bought a new house that was supposed to be done in November. The escrow closing date of our current home is set to end in November, upon our closing date of the new home we're purchasing. Now, we've been told that the new home will not be ready until January of next year. Our realtor explained that escrow will end in November and we can sign an amendment to extend escrow if both parties are willing. However, current home prices have skyrocketed and we can easily sell our home for much more than we sold it. What, if any are the legal issues and ramifications should we not sign the amendment to extend escrow and re-list our home in order to get a better deal? Thanks.

[HomeGuru]

Originally posted by Gfgonzo
What is the name of your state?

California


We currently sold our house and bought a new house that was supposed to be done in November. The escrow closing date of our current home is set to end in November, upon our closing date of the new home we're purchasing. Now, we've been told that the new home will not be ready until January of next year. Our realtor explained that escrow will end in November and we can sign an amendment to extend escrow if both parties are willing. However, current home prices have skyrocketed and we can easily sell our home for much more than we sold it. What, if any are the legal issues and ramifications should we not sign the amendment to extend escrow and re-list our home in order to get a better deal? Thanks.

**A: the Buyer could sue for breach of contract and specific performance and force you to close and move out before your new home is ready.

Our realtor stated that escrow was ending no matter what in November and said that technically, we didn't have to extend. Is this correct? I should add that the agreement stated that the closing of the sale of our house is contingent upon the closing of the new house.

[HomeGuru]

Originally posted by Gfgonzo
Our realtor stated that escrow was ending no matter what in November and said that technically, we didn't have to extend. Is this correct? I should add that the agreement stated that the closing of the sale of our house is contingent upon the closing of the new house.

**A: now things get more confusing. Have a real estate attorney review your contract.