Hi all,
I have everything in place to close on a property purchase, however, Seller is wanting to take on another contract, because closing was delayed by a week, and we did not have an amendment to officially extend the close date. Is that possible?
The delay was out of my hands, as Lender did not get back to me until recently; and I have provided everything that they asked for, every step of the way, in a timely fashion.
Regards,
Minh
I'm sorry but I fully disagree with most of your premise.
You say deadlines are deadlines, but then say that "too bad for them I was late and they get nothing". "I would agree to pay if I was even later than the lateness I was, but not before". Either you care about deadlines or you don't. You care about the contract you entered into or you do not.
You state that you held up your end of the bargain and closed when promised (the date you decided on your own to promise, not the agreed upon date because you missed that)... But you were late, it was your side that failed. You choose the lender and made promises. You were unable to meet your obligations and somehow they should just wait it out and hope you can actually close some day with no extra guarantees from you.
You would have agreed in the beginning, but you didn't understand it, so he is just out the holding costs. Because you didn't understand it. Yes we are all in Real Estate together, but you refusing to meet your deadlines, refusing to make good faith adjustments when you fail then blaming them for being unprofessional, just strikes me as you do not understand.
As an agent if you represented a seller and the buyer was a week late and going to be even later (and you are not sure if they will ever actually close because they can just tell you anything without per diem or extra EMD), would you roll over and tell your client "well tough" or would you get them something for the failure of the other side to meet contract or at least a guarantee to protect them?
Lastly they did not "confirm that they could not move forward in Texas", they simply made a business decision not to walk away from you and take a loss on your inability to meet your deadlines. I'm not trying to beat you up, but if you continue with the way you are thinking you may lose out on a "homerun" of a deal in the future. Even worse you may have a client lose out on a "homerun" deal and when they start blaming you for a failure to perform "reasonable care" you could be liable.
Good luck in your investing and your business.
I could have easily agreed to the per diem in the beginning, but at the time, the concept was foreign to me and I objected based on my own experiences and my colleagues' experiences with closing delays. During the week of the original close date, I spoke with the Seller to provide updates and communicated the delay, due to Lender still going through the underwriting process. That was when Seller asked for the per diem, and when I challenged him, he started threatening me by saying things like, "You do not want to play with fire, or you'll get burned", and "Don't poke the bear". I found it very unprofessional, so of course I did not agree to Seller's terms.
We are all in this Real Estate business together, and there is no reason to treat each other unprofessionally. We should help each other to achieve that common goal. When Seller's assistant reached out to me, he commented that they have other offers that were higher, but they cannot move forward because they were "stuck" with my contract; thus confirming that Sellers are unable able to take on another contract, if the current contract has not be resolved, at least in Texas.
That is not the most important lesson to learn from this transaction.
@Jason Hirko But my original question is, would Seller be able to take on another contract, if the current contract/escrow is not closed?
Because there is no contract. Contract expired last week. Seller is released from the previous contract for failure of buyer to perform. Is your realtor involved?
I guess the better question would be, would any Title Company be able to close on the new offer while my current Escrow/contract is not yet closed? From researching, all signs point to "no", so I wanted to get confirmation from people who have had this experience.
Doesn't matter, what if they have a backup offer that is higher than the agreed upon amount? What if the offer was $20K higher and all cash, it could behoove them to wait a few extra days to pick up the higher offer & they might expect the ED.
Even if they release the deposit they might not have a ton of incentive to complete the contract since you didn't close in time. Yeah, that's kinda crappy, and maybe the right thing would be to work with you to get an other week and get the deal done. But not everyone does business that way. And honestly , you didn't close when you said you would close.
When Seller's assistant reached out to me, he commented that they have other offers that were higher, but they cannot move forward because they were "stuck" with my contract; thus confirming that Sellers are unable able to take on another contract, if the current contract has not be resolved, at least in Texas.
I've been trying to avoid continuing to post on this thread because you have been given the correct answer multiple times by various credible sources, but continue to argue your point, and it is tiresome. However, your last statement here is misleading at best. The 'seller's assistant' is most likely posturing to get you to follow through with closing. Just because they said that, doesn't mean that it's true. If you haven't performed by the contract date, the contract in unenforceable, meaning it has been resolved. And in Texas, sellers can accept as many backup offers as they want when they're under contract. Anyone with a Texas Real Estate License will tell you this. Look up TREC promulgated form Addendum No. 11-7 "Addendum for Back-up Contract."