Closing Date expired on contract. Can i make a new offer?

27 Replies

I signed a contract to buy a property “as is”, however, during the time between us signing the contract and closing, we learned that we should have offered much less, but we already signed the contract (we were also paying in cash). Now the closing date has passed and we have not closed on the property (no fault of our own) and we want to renegotiate. Can we renegotiate or back out of the contract? Or Is the contract null and void?

We have no idea what your contract says, but it is likely communication from the seller?

@Wayne Brooks . The contract says we close on December 7th...”or a reasonable time thereafter if the Purchaser or Seller is making diligent efforts to satisfy any contingencies Contained in this agreement.” However, we did not have any “contingencies” in the contract. We were to buy “as is” in cash, that’s it.
@Wayne Brooks No communication from the seller, however, i did contact my real estate agent and told her we wanted to make a new offer since the closing date has expired.

If tou’re using an agent, they will be the best one to guide you, as they know the transaction/seller specifics.

@Ryan Sykes why did the property not close? If there were issues on the sellers end (usually title related, etc) and they are actively working on them, it's probable you can't just back out and make a new offer. Did you take any action to call to close, was there a time is of the essence clause in the contract?

@Brian Pulaski No, no time of essence clause but isn’t the closing date on the contract now void since we didn’t close on that date?
If a buyer breached an agreement with me, I would forfeit deposit and/or sue ... not renegotiate. But hey I’m old fashioned.
@Tom Gimer I understand that but not closing on the date is breech of contract it’s it?
@Ryan Sykes . Ask your agent. Without seeing the contract we can’t really comment on this
@Ryan Sykes Failing to close a non-contingent cash contract on the agreed settlement date is the definition of a breach.

How's your relationship with the seller? Do you know them or is just purchasing via 3rd party representation like an agent?

How about just telling us Why it didn’t close, and any other details about the transaction.  Asking general questions with no context isn’t going to get you an accurate answer.  But from a practical point of view, why would a seller close at a lower price if they didn’t close at the current price?  If You didn’t close simply because you changed your mind about the price, I’ll tell you take a hike, as they should.

So you entered into contract, had second thoughts, and are now thinking the seller's [apparent but still mysterious] failure to close is a gift? I think best case scenario, if it was really the seller's fault, is you get your deposit back. But if you caused the delay, or simply didn't act in good faith to close ("dragging your feet"), your deposit might be gone or worse. We're all speculating here, of course, because we have about 3% of the total information. Good luck!
@Wayne Brooks My realtor told me we didn’t close because the seller still owed money on the house. Nothing was put in writing nor was there a contract extension or any contingencies.
@Mike DeChristopher My realtor told me we didn’t close because the seller still owed money on the house. Nothing was put in writing nor was there a contract extension or any contingencies.

Okay, so if the sale didn’t close because the seller “still owed money on the house”.....why do you think it will close at a lower price?

@Wayne Brooks I’m hoping they will accept my off at a lower price since we didn’t close on the date of the contract. I just don’t know when the contract is void since the date has already expired.

Your agent is your best bet.

How much lower are you planning to offer?  Bigger question: how will the seller cover the difference of the money owed verse what you pay?

Is your agent a rookie?  If not there are a lot of missing details...

Ryan -- I agree with everyone who has directed you back to your real estate agent. The standard purchase agreement from the Central Virginia MLS has two different options for setting the closing date which have different provisions for determining whether or not (and when) one party or the other has the right to terminate the agreement. And those require further action which your agent will need to help you with. The contract doesn't "dissolve" on its own just because the target settlement date has passed.

If it didn't close because the seller owed money, then they owed more than your offer and the title company could not pay off their loan at closing. The contract is done, but don't think you can now offer less. The same problem will come up at title.

@Ryan Sykes lots of houses close with a seller owing money... this seems odd that the closing date passed and all you were told is the seller owes money on the house. Is this going to be a short sale? What has your agent said about your situation?

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