Closing Date Problem

What is the name of your state?New Jersey
We purchased another home out of state and are supposed to be closing on it on April 15th. We sold our current home and our contract states the closing will be on or before April 15th; however, our attorney had previous communications with the buyer's attorney stating that it was critical that we closed no later than April 13th and all were in agreement. Now, just three days before closing, we are notified that the buyers did not obtain a mortgage committment by April 1st, as stated in the contract, and they will not be able to close at least until the week of April 18th. Our attorney is advising us to obtain a loan to cover our down payment and closing costs or delay closing. We are wondering why we should be penalized and suffer the inconvenience due to the buyers not adhering to the contract stipulations, since we are the ones that will be out of money for lodging and additional loan expenses. Who should have been looking out after our interests (such as ensuring the Apr 1 date was met), our real estate agent or attorney? Do we have any legal recourse against the buyers?

You might think about finding a new attorney and realtor, since you believe that you are NOT professionally represented by either.

Just like doctors and mechanics, lawyer's and realtors have their bad one's too. Don't blame the entire legal profession or all REALTORS for the actions of a couple of individuals.

humbo2 said:

Now, just three days before closing, we are notified that the buyers did not obtain a mortgage committment by April 1st, as stated in the contract, and they will not be able to close at least until the week of April 18th.

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How come you are just finding out about this??? You or your agent should have gotten a WRITTEN loan committment long ago (at least on or before 4/1).

Our attorney is advising us to obtain a loan to cover our down payment and closing costs or delay closing.

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Most lenders will not allow you to borrow the down payment. Does your purchase agreement include a sales contingency?? If so, contact your seller and see if they will agree to delay of that purchase.

We are wondering why we should be penalized and suffer the inconvenience due to the buyers not adhering to the contract stipulations, since we are the ones that will be out of money for lodging and additional loan expenses.

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Simply, the cost of not protecting yourself.

Who should have been looking out after our interests (such as ensuring the Apr 1 date was met), our real estate agent or attorney?

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Neither. The ONLY person obligated to 'look after your interest' is you.

Do we have any legal recourse against the buyers?

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Depending on your agreement and a full review of the facts, you might have some recourse. However, it is far more likely that the only real recourse you have is to terminate your current sales agreement. And that may, or may not, be the best choice to make.