I am selling my condo and buying a coop. The closing date for both contracts is "on or about 8/31/13" to give me time to go through the coop board review. I was approved by the Board on 8/6/13 and notified everyone we were ready to close. My buyer refused to close saying he was taking a trip out of the country and returning 8/31/13. He wanted a closing on 9/6/13. As a result of this, I had to get... [more]
I am selling my condo and buying a coop. The closing date for both contracts is "on or about 8/31/13" to give me time to go through the coop board review. I was approved by the Board on 8/6/13 and notified everyone we were ready to close. My buyer refused to close saying he was taking a trip out of the country and returning 8/31/13. He wanted a closing on 9/6/13. As a result of this, I had to get my mortgage commitment extended to 9/16/13.
The buyer didn't submit the paperwork his bank required until he returned on 9/3/13, so his bank refused to allow the closing to take place on 9/6. He finally got clearance today on 9/10 and wants to close on 9/12. Everyone has been scurrying around to make this happen since the buyer's commitment expires 9/17 and mine 9/16. HOWEVER, the attorney for the coop refuses to schedule our closing until 9/23, despite my mortgage commitment expiring.
Am I within my rights to refuse to go to closing on my apartment on 9/12 and ask for a deferral until 9/23? I have asked the bank for another extension of my commitment, but last time it took almost 2 weeks. I can't see closing on my apartment and running the risk of not having a mortgage or a place to go to. My buyer put me in this position by going off for several weeks. I feel he should ask for an extension also.
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Response by kharby2
over 12 years ago
Posts: 279
Member since: Oct 2009
Ask your attorney first thing tomorrow morning, but this kind of thing happens all the time.
In fact, much worse things happen all the time.
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Response by crescent22
over 12 years ago
Posts: 953
Member since: Apr 2008
Why does the coop need an attorney there? Seems like a managing agent could handle all the bureaucratic duties. More curious, why is he becoming a third wrench?
You can delay for 30 days past 8/31 for any reason.
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Response by jelj13
over 12 years ago
Posts: 821
Member since: Sep 2011
I know when I sold a coop many years ago, the coop attorney held the closing in his offices. But even that firm had several attorneys that could represent the coop. This firm has one attorney covering this building.
My attorney has not responded to my questions yet. That usually means he's working on it and doesn't have an answer yet.
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Response by kylewest
over 12 years ago
Posts: 4455
Member since: Aug 2007
Virtually all contracts of sale allow either party to reset the closing date for up to 30 days beyond the date stated in the contract. In order to prevent this, the contract must explicitly state something to the effect of "time is of the essence" with respect to the listed date. This is very basic stuff flowing from standard contract language--your attorney should be very familiar with the answers.
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Response by yikes
over 12 years ago
Posts: 1016
Member since: Mar 2012
"time is of the essence" clauses are laughably unenforceable--it's like crescent said.
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Response by dylan621
over 12 years ago
Posts: 30
Member since: Feb 2011
Do you need to lease back from your buyer for some period of time so you have the money on your sale to close on your purchase? If so, that should already be built into your sale contract and if not, you need to keep on good terms with your buyer
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Response by jelj13
over 12 years ago
Posts: 821
Member since: Sep 2011
Yes I do need to lease back for a maximum of 2 weeks. This is NOT in the contract, but a private deal with the buyer. That's why we've been so patient with this buyer.
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Response by ab_11218
over 12 years ago
Posts: 2017
Member since: May 2009
then why don't you close but do a lease back for 4 weeks.
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Response by selyanow
over 12 years ago
Posts: 132
Member since: Dec 2007
kylewest is correct. You can close up to 30 days from the time of the closing date on the contract unless there is a "time of the essence" clause in the contract.
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Response by jelj13
over 12 years ago
Posts: 821
Member since: Sep 2011
There is no time of the essence clause in the contract. Now the buyer wants to walk because he can't close tomorrow. Can he let his mortgage commitment expire and do this?
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Response by ab_11218
over 12 years ago
Posts: 2017
Member since: May 2009
no one can just walk without losing the 10% down payment.
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Response by jelj13
over 12 years ago
Posts: 821
Member since: Sep 2011
He has a mortgage contingency. Can he let his mortgage commitment expire and then walk?
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Response by ab_11218
over 12 years ago
Posts: 2017
Member since: May 2009
he can also extend. if he doesn't, it's his fault. you had to extend because of him.....
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Response by intercontinental
over 12 years ago
Posts: 33
Member since: Jan 2013
If your buyer has a standard mortgage contingency and he did not have to waive anything (e.g., low appraisal), then the contingency goes away and he will lose his 10% deposit if he walks from the deal. I would speak w/ your attorney asap to confirm this. Why does your buyer say he can't close tomorrow? You still have another 5 days to reschedule before his commitment expires.
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Response by jelj13
over 12 years ago
Posts: 821
Member since: Sep 2011
My lawyer just confirmed what you guys have been saying. He is trying to help us with our mortgage extension. We've bought and sold a lot of property and, fortunately, everything went smoothly.
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Response by cmpizz
over 12 years ago
Posts: 37
Member since: Feb 2013
Once your buyer gets a mortgage then the mortgage contingency clause is satisfied and the deposit will be lost of the buyer doesn't close. Not to say, however, that you couldn't have a long drawn out court battle for the deposit. Nevertheless, like everyone else has said, this is pretty common and your lawyer should be able to arrange for a post possession for you and smooth things out. I hope you get your committment extended. Good luck.
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Response by jelj13
over 12 years ago
Posts: 821
Member since: Sep 2011
My mortgage commitment extension came through today and so did my buyer's. The law firm for the coop is providing another attorney available on the alternate closing dates requested by the buyer. Unfortunately, the buyer has now rejected his own dates ... Someone also notified the staff and security through the building's online system that we are no longer the owners of the apartment creating a new set of problems.
Ask your attorney first thing tomorrow morning, but this kind of thing happens all the time.
In fact, much worse things happen all the time.
Why does the coop need an attorney there? Seems like a managing agent could handle all the bureaucratic duties. More curious, why is he becoming a third wrench?
You can delay for 30 days past 8/31 for any reason.
I know when I sold a coop many years ago, the coop attorney held the closing in his offices. But even that firm had several attorneys that could represent the coop. This firm has one attorney covering this building.
My attorney has not responded to my questions yet. That usually means he's working on it and doesn't have an answer yet.
Virtually all contracts of sale allow either party to reset the closing date for up to 30 days beyond the date stated in the contract. In order to prevent this, the contract must explicitly state something to the effect of "time is of the essence" with respect to the listed date. This is very basic stuff flowing from standard contract language--your attorney should be very familiar with the answers.
"time is of the essence" clauses are laughably unenforceable--it's like crescent said.
Do you need to lease back from your buyer for some period of time so you have the money on your sale to close on your purchase? If so, that should already be built into your sale contract and if not, you need to keep on good terms with your buyer
Yes I do need to lease back for a maximum of 2 weeks. This is NOT in the contract, but a private deal with the buyer. That's why we've been so patient with this buyer.
then why don't you close but do a lease back for 4 weeks.
kylewest is correct. You can close up to 30 days from the time of the closing date on the contract unless there is a "time of the essence" clause in the contract.
There is no time of the essence clause in the contract. Now the buyer wants to walk because he can't close tomorrow. Can he let his mortgage commitment expire and do this?
no one can just walk without losing the 10% down payment.
He has a mortgage contingency. Can he let his mortgage commitment expire and then walk?
he can also extend. if he doesn't, it's his fault. you had to extend because of him.....
If your buyer has a standard mortgage contingency and he did not have to waive anything (e.g., low appraisal), then the contingency goes away and he will lose his 10% deposit if he walks from the deal. I would speak w/ your attorney asap to confirm this. Why does your buyer say he can't close tomorrow? You still have another 5 days to reschedule before his commitment expires.
My lawyer just confirmed what you guys have been saying. He is trying to help us with our mortgage extension. We've bought and sold a lot of property and, fortunately, everything went smoothly.
Once your buyer gets a mortgage then the mortgage contingency clause is satisfied and the deposit will be lost of the buyer doesn't close. Not to say, however, that you couldn't have a long drawn out court battle for the deposit. Nevertheless, like everyone else has said, this is pretty common and your lawyer should be able to arrange for a post possession for you and smooth things out. I hope you get your committment extended. Good luck.
My mortgage commitment extension came through today and so did my buyer's. The law firm for the coop is providing another attorney available on the alternate closing dates requested by the buyer. Unfortunately, the buyer has now rejected his own dates ... Someone also notified the staff and security through the building's online system that we are no longer the owners of the apartment creating a new set of problems.