Hi. I'm in the process of buying a home and got clear to go from the bank but the seller doesn't want to set up a closing date because she is buying elsewhere. What do i do ?
Attorney · Long Island, NY · Member since 2009 · 34 posts · 20 votes
3y
NY real estate attorney here and @Tim Delaney is essentially right. Contract closing dates are not dates certain. After 30 days or so your attorney can send the seller a “time of the essence letter” which will set a definite closing date. If seller doesn’t close at that time then you have to bring a lawsuit. The remedy as a buyer is forcing them to sell. Speak with your attorney and he/she should be able to explain how it works in light of your specific deal.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
3y
What does your contract say? It should already have a closing date set, so that is the date you're closing. If she refuses then you could potentially pursue her for damages e.g. any costs incurred in buying. But before you get there I'd try to get a better understanding of what she's looking for as it sounds like she is buying and will close, she's just being difficult with scheduling it because she's not sure when her purchase transaction will close.
What does your contract say? It should already have a closing date set, so that is the date you're closing. If she refuses then you could potentially pursue her for damages e.g. any costs incurred in buying. But before you get there I'd try to get a better understanding of what she's looking for as it sounds like she is buying and will close, she's just being difficult with scheduling it because she's not sure when her purchase transaction will close.
Well absent anything else it sounds like you potentially have a closing date 45 days from the original contract execution.
Yea i was told that there is an additional 30 days grace period here in New York. It just bothers me that Seller don’t wanna sell yet because her purchase hasn’t close yet. Thanks in advance
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,
Do you have an Agent, or are you handling the purchase on your own? If you do have an Agent, they should have taken the time to explain the closing process and timelines, based on your specific contract. There are typically a number of variables, including days for inspections, days for loan approvals, and other contingencies, but this is something that should have been accounted for when writing the offer. "Time is of the essence" is a common phrase that is included with identification of a closing date. Of course, local laws may differ... What is your plan if Seller's new purchase falls through or has further delay?
Do you have an Agent, or are you handling the purchase on your own? If you do have an Agent, they should have taken the time to explain the closing process and timelines, based on your specific contract. There are typically a number of variables, including days for inspections, days for loan approvals, and other contingencies, but this is something that should have been accounted for when writing the offer. "Time is of the essence" is a common phrase that is included with identification of a closing date. Of course, local laws may differ... What is your plan if Seller's new purchase falls through or has further delay?
Thanks man i will be contacting my agent or my attorney because i need more answers like you mention what if seller purchase is delayed. I feel like everyone is just working with Seller conviene and not buyer(me)
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
3y
If you have a contract, you have a closing date. The contract dictates the closing and conditions that may delay or extend it. It sounds like the Seller either has a better understanding of the contract than you do OR is just holding everyone hostage. Go read your contract. And, your agent should have already explained the situation to you and/or pushed the other side to perform. The answer to this problem is not here at BP...it's in your contract.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
I can’t speak for your state. If the contract is not terminated, the seller is in default. They have an obligation to sell it to you and only you if you held up your part of the agreement.
Buffalo, NY · Member since 2018 · 790 posts · 530 votes
3y
@Ramon Torres I’m in NY as well (Erie county) and from my experience the closing dates in the contract are “suggestions” and almost are never held as true dates. That said, it is usually the buyer that is delayed because of their bank holding things up.
You should be in communication with your agent or attorney, not the seller directly. Ask your representatives to kindly ask when the expected date is and then ask your attorney when it makes sense to invoke time of the essence clause.
I know it’s frustrating, but in the grand scheme of things an extra 20-30 days isn’t the end of the world. Unless you are already paying interest.
Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes
3y
@Ramon Torres, that sounds vague, uncertain and indefinite. It is not the language a state Real Estate board would have in their standard 1-4 family sale contract. Did you have a state licensed Realtor, not just an agent, represent you? This is another example of why you only want to work with the very best RE professionals. A top notch Realtor and her team of in house attorneys, etc would have already handled this for you. And everyone in town would know better than to ever mess with the clients of that agency. If you decide this particular purchase is not worth the hassle, let it go. Surround yourself with the very best RE professionals, learn and move forward. Those professionals are wildly successful because of the benefits you will enjoy as you become wildly successful as an investor. You're only as strong as the weakest person on your team. Don't ever settle for less than that. Put in the effort to succeed.
Attorney · Long Island, NY · Member since 2009 · 34 posts · 20 votes
3y
NY real estate attorney here and @Tim Delaney is essentially right. Contract closing dates are not dates certain. After 30 days or so your attorney can send the seller a “time of the essence letter” which will set a definite closing date. If seller doesn’t close at that time then you have to bring a lawsuit. The remedy as a buyer is forcing them to sell. Speak with your attorney and he/she should be able to explain how it works in light of your specific deal.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
3y
@Ramon Torres You have 2 Practical choices….walk away or wait. Try to find out Exactly what point they are with their other purchase. Trying to sue to enforce Specific Performance is a months long process at best, If you are successful.
Yes, you have a contract….but life happens and things change.