How to request the builder to postpone Closing date?

Question

Hello BPers -

Hoping someone can help me here. I am in the process of buying a TH from Ashton Woods in the Triangle Area of NC. The construction has been delayed by almost 3 months and is currently expected to close end of September. In the meantime, I had to urgently travel internationally and expected to be out of pocket for a month or so. I tried requesting the sales agent to help with the situation but get the feeling that neither the request has been considered nor represented for potential management support. I was told there is a 'process' but no visibility to the process and actions are taken thus far.

Can someone suggest if there is a way to successfully get the closing date moved by few weeks? All I am asking them is for a 2-week delay only ending up getting a penalty clause pointed at me ($500/day for any delay in closing). I understand the builders have an upper hand but seem the buyer is at the whims of the builders without any recourse.

Sincerely appreciate your expert advice.

Dan Schwartz · Answer

@Anand Narayanan sorry to say, but I’m sure the builder’s monthly/quarterly financials are more important to them than your wish to not close while out of the country.  Tough situation for you, but I doubt they will bend (at least not without the sort of compensation you quoted).

Cara Lonsdale · Answer

Comb through your purchase agreement.  This is the road map of your transaction.  It doesn't matter what the sales rep is telling you.  Your rights and abilities are clearly outlined in your contract.  Remember, the sales rep doesn't represent you, so it is not required, nor in their best interest to help you if it would mean more $$$ for the builder.  So, remember that when you communicate with them.

If allowed, I would request an addendum for the close of escrow (COE) to be on, or after XXXXXXX date.  Have this addendum presented to the broker who signs the contracts.  With it, provide an explanation as to why you need the 2 weeks.  Be sure to remind the builder that their delays (performance) have caused your delay (performance) as their delay provided a scheduling conflict for you.

On a separate note, if you are worried about not being available to sign docs while you are away, you can resolve this conflict a couple of different ways.  You can either have a mobile notary come to you to accommodate a signing, and then the notary will mail back docs to the title company.  OR, you can assign a power of attorney to sign on your behalf.  Either way, this would allow you to perform under the contract to close on time.

Who knows, maybe the builder will delay a final time and your scheduling conflict will not be an issue any longer.

Best of luck to you!