Real Estate Delay in Closing

[Cathleen Wright]

What is the name of your state?

NY
I have a similar question to one that was previously posted. We signed a contract to sell our house with a closing date by September 1. It is now Sept. 20th and as I understand it, we probably won't be closing before October 1. What are the repercussions for the buyer. How much time do we give them before we keep their down payment or some sort of penalty is put into place.

[moburkes]

What does your contract state?

[Cathleen Wright]

the contract says that we would be closing on or before September 1st. We at that point gave them 30 days, which means October 1st. I was just informed by my lawyer that they can't close until after October 1st. I asked him what happens then. He says he sends them a letter saying they have 30 days to close. I want to know, does that sound right to you. Is that customary. At what point does the buyer pay our carry costs?

[moburkes]

It doesn't sound like you included a clause in your contract in the event that they do not close in a certain number of days. Therefore, by not closing "on time", there is no penalty.

Your attorney is giving you accurate information.

[Cathleen Wright]

Is it too late to amend the contract to say penalties after October 15th or so?

[moburkes]

Originally Posted by Cathleen Wright

Is it too late to amend the contract to say penalties after October 15th or so?

Would you sign that contract if you were the other party?

[Cathleen Wright]

In good faith. Yes.

thanks for you help. I really appreciate your candor.

[moburkes]

I don't AT ALL understand how that's good faith. Apparently, they are having financial problems if the loan won't close. Why would they want to give you money if they can't get financed? I'm sure that they would prefer to use that money towards the next loan down the road. Just my 2 cents.

[CraigFL]

It would be my opinion not to rile the buyer right now. As long as you are really going to close, you don't want to give the buyer any more remorse associated with this deal lest they consider backing out which I'm sure would cause you more problems...

[danno6925]

I was just informed by my lawyer that they can't close until after October 1st. I asked him what happens then. He says he sends them a letter saying they have 30 days to close.

And if the closing doesn't occur in that timeframe, you would keep their deposit and look for a new buyer, since they will have breached their contract's "time is of the essence" clause (presuming your attorney had the foresight to add one if it wasn't threre already). Hang in there. Things will be fine. Even if they aren't ok with this buyer, you still have their deposit.