Mortgage Contingency Extension

No, failure to get a mortgage timely does not make the contract "null and void" assuming it's a legal contract to begin with, which I'm sure it is if overseen by an attorney. "Void" refers to a contract that was not legal to begin with, for example, a contract with a 14-year-old child (called an "infant"). Kids that young can never sign a legal contract, but if they go through the motions, it's void, regardless of anything else.

Breach of contract is failure to live up to the terms of a contract. A lot depends on the wording of this clause and its context. I have been told that getting liquidated damages from a buyer (the deposit) as a seller is a tough business; you might find yourself in court no matter what the virtues of your position.

If I were in your shoes I would just let them have the extension and forgettaboutit.

No, dont want the deposit...just wanted to know if I now have to right to cancel given that they are in breach of contract?

They aren't in breach of contract now, they are merely asking for an extension of time in a contract provision. If you say no, they probably have other options and this sale is going to happen.

Of course you don't have to sell your property to them if you don't want to, you can sell it to that other higher bidder, or keep the property after all, but you can be sued for specific performance--transferring title-- if you do that. Nobody is going to hold a gun to your head and make you sign anything, but somebody should have explained to you that you signed a very serious document.

Obviously if you want out of the contract you need to talk to your attorney asap, but it's probably impossible.

That said---I am a person who got out of a purchase contract, as a buyer, and even kept my entire deposit, thanks to legal errors the other side made and the fact I had a really clever lawyer who knew exactly how to exploit their mistakes.

From everything I read online, it seems they are changing the terms of the agreement which entitles the seller to terminate or extend the contract......waiting to speak to atty.

BTW...im fully aware of the seriousness of the document....we gave these buyers everything and its now been 3 months and we are feeling that they wont get a mortgage even with extension....so we are trying to determine if we can terminate contract and move on.....

Oh wow, thanks for the clarification, in that case you really have my sympathies. I've never had a buyer like that, I would be climbing the walls by now. A lawyer friend of mine once warned me that you can never tell for sure who can and cannot get a mortgage, which is why, of course, Cash Is King. (apologies to Elvis fans)

Your contract spells out what happens if the contingency lapses. If they didn't pursue financing in good faith, you should be entitled to sue for their deposit. If they did and they didn't get a commitment in time, then I think the contract terminates with no penalty. Ask your lawyer.

It depends on what your contract says, is time of the essence?

Banks are taking a long time to process loans, I should know, I'm a mortgage broker.

They had 45 days and it lapsed....so we were able to cancel according to my atty. Now the other question.....our realtor worked on selling our home for 1 yr....on and off.....3 open houses and then appts here and there....Since we now took the home off the market due to failed closing......whats an appropriate gift to give him since he lost his commission?