Seller postponed closing last minute. What concessions can I get?

Question

Hi all,

I have a house that already had a delay in closing because the seller needed time to move out. Now this morning I get an e-mail saying that with 44 hours to go they don't have their paperwork together and can't close on the intended date. I had a contractor set up for that afternoon and a prospective tenant scheduled for the next day. Now I've had to put the contractor on hold and the tenant says that he can't wait and is going to take a different apartment. Does anyone have experience with this? What concessions should I try for since the lack of competence on the seller's end has cost me time and money?

Jason Hirko · Answer

Since the seller is still willing to perform, I don't think you have much recourse. However, if you wanted to play hardball with the seller, you might consider telling the seller that you won't agree to extend the contract unless he gives you X, Y, or Z, but that would assume you're willing to walk, and he's very motivated.

Russell Brazil · Answer

You have no recourse. You either allow them to extend or decide not to buy the place. Closings are delayed all the time, it is a normal part of doing business.

Jason Hirko · Answer

I think it is perfectly reasonable to ask for cash to extend the closing. Say, I want $5,000 cash at closing or a credit off the sales price, or something of that nature. However, make sure it's actually his fault, and not a delay at the title company.

Brian Barfoot · Answer

@Michael Seeker: There was no more formal agreement with the prospective tenant other than me saying "Hey, I'm supposed to be buying a house soon and I know you need one soon. Wanna come by and take a look after I close?" Normally I'd agree that the later closing date wasn't the seller's problem but this wasn't an "on or about" situation. This was all parts in place, everything ready to go, last minute pulling-of-the-plug thing.

@Jason Hirko: The algebra of this is exactly what I was looking for. What are some X, Y, and Z specifics? I could try to get some of the closing costs covered or part of my lawyers fee maybe. The fact is I'm not interested in walking away from this deal and I've never been good at hardball.

@Russell Brazil: I am as used to closings moving as the next guy, just never this late. My realtor says this is a new experience for her and she's been in the business over twenty years. My lawyer tells me they didn't put a contingency in the agreement for this kind of thing and so I may be able to force them to close or to pay me rent until they actually finish moving out.

I appreciate all the responses. I've been told that I'm "too nice" when negotiating and while it is still making me money to act this way I start to wonder if I'm being taken advantage of on some occasions. Either way I'll end up with a very nice cash-flowing property at a good price.

Michael Seeker · Answer

@Brian Barfoot - I don't know if there are any laws around it, but it sounds like you advertised something for rent that you did not own. I would say you took on the risk by doing so and anything lost due to a later close date or otherwise isn't the seller's problem. I've never heard of a seller not performing so I don't know what sort of legal recourse you may have there, but I doubt it would in any way be connected to your time/money lost with the contractor and tenant. Lost "time and money" seems like an inherent risk of approaching a purchase in this way.

You could look at the silver lining which is that it doesn't appear the tenant is going after you for failing to provide them a rental (hopefully there was no lease signed) or advertising something you did not own.

Seller postponed closing last minute. What concessions can I get?

Seller postponed closing last minute. What concessions can I get?

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