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Closing situation - who has the power here?
So after rushing us to get everything done and insisting on an April 11th closing while refusing to rush any work on their side, our sellers want to move closing to April 30th. To be fair, I think it's their agent who is the annoying one, not them. It's a divorce and one of the sellers is having financing issues in relation to the complex she was moving into and now has to switch banks. The other seller is closing on his place April 30th.
We gave our landlady notice and it looks like we HAVE to be out by April 15th. The new tenants are signing their lease tomorrow and while we'd be fine to move closing if they miraculously back out at the last minute, it's highly unlikely that it will happen.
Currently our agreement of sale says we close on April 11th. Sellers FINALLY replied to home inspection fixing nearly everything we want (only shot us down on the home warranty).
I'm trying to figure out where we stand -- I know we could do a leaseback and stay with H's mom for two weeks. We discussed the issue with her in case something big happened in the process and she would LOVE to have us. We don't really want to put stuff in storage, take it out, etc though.
What happens if we just say "no, we want to close April 11th." ? Do they have the right to cancel the sale or anything crazy like that?
Re: Closing situation - who has the power here?
I don't see anything that says that specifically.
It says that the property will be delivered vacant, free of debris with all structures broom clean unless they identify in writing *prior* to signing this agreement that the property is subject to lease. It says this is to happen on the day of settlement (April 11th) or before if both buyer and seller agree.
If it states that everything has to be done before closing on April 11th, then closing should be on April 11th.
I would ask your lawyer or REA this question, they will have more legal knowledge then I do.
Thanks everyone. An update for anyone curious - our REA hasn't had anything like this happen before, but if they refused to close before the date in the contract we would have to sue for "failure of performance" or something like that. It would involve going to court and asking for damages for hardships we endured because they didn't get the heck out. Obviously, something we'd rather avoid.
We took the high road and got back to them yesterday, letting them know that if Sunday's lease signing doesn't work out for some reason we would be fine with moving the date. I did have my agent emphasize that we thought that outcome was unlikely given that credit and background checks had already been run on the new tenant and that our apartment is pretty desirable for its size and layout (they're hard to come by in our area) so the tenants likely won't back out. The other agent said that she'd work on temporary housing for the sellers, so it sounds like it won't be a huge issue.
Jumping in a little late, but you can't take them to court for not closing on the 11th. Real estate closings are constantly moved, and that's considered normal. Unless your contract says "time is of the essence" or provides for some kind of damages specifically for a closing after the 11th,, you have no damages.
Did your lawyer help you with the contract or did your REA do it?
It does say that the dates are of the essence and considered firm unless mutually agreed to in writing by both parties. We can't take them to court if all parties to everything in their power to make it happen on the 11th, but we can if they intentionally obstruct the process.
People typically don't use attorneys here, but H's uncle is one so we ran it by him. We used the standard contract for our state which is pretty much fill in the blank.
Ah I see, sounds like you are all covered. People almost never realize how crucial the language in the contract and the specification for "time is of the essence clauses". Hope everything works out for you!
Thanks! I think we're in good shape. Our apartment did get leased today (hallelujah!) and we definitely have to be out of here by April 15. It sounds like the sellers are going to find temp housing.
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