Hi my downstairs neighbors are under contract to buy my condo.
They first agreed back in May on a June 30th settlement date.
Before the June 30th settlement they & their lawyer went on vacation alledgedly and they asked to switch the date until August 3rd. They signed the contract and put 10% of purchase price in Escrow.
I was looking forward to this deal finally closing until my lawyer called and gave me bad news.
My neighbors are now saying they need an extension until the middle of August.
Im really frustrated, anxious and don't feel trusting of them to finally see this deal through.
I need some advice. Shall I tell them no more extension and risk having to list my place for sale ?
And if they don't perform, how can I keep any of the desposit they have in escrow with my lawyer ?
Im so mad because when I agreed to sell to the housing market was in better shape and now I may lose a lot if I have to sell in late Summer. If it helps with advice, I m in New Jersey. Thanks all
2006-07-25 14:44:37 · 9 answers · asked by Leea 1 in Business & Finance ➔ Renting & Real Estate
My lawyer isn't being any help to me.
He says that I should give them yet another extension because I'll probably lose money if I try and start selling it now to new people.
Very frustrating. :(
2006-07-25 14:54:14 · update #1
Also my lawyer has not reassured me that I can even keep the 10% deposit if my buyers don't perform.
He told me something like in NJ it's hard to hold onto the deposits even when the deal falls through.
2006-07-25 15:03:53 · update #2
you need a realtor! this is SUCH an irritating situation to be in, as a seller!!! nothing worse than keeping your property off the market for a buyer who drags their feet!
what you CAN do, is fill out an ADDENDUM to the contract of sale, stating that if they do not close by __(date)___ then earnest money will be forfeited by buyer and shall be paid to the sellers. you can also ask that they put up MORE earnest money, but i wouldn't recommend this, as they may walk!
i'd let them know that if they want more time, they need to BUY it from you! make the earnest money non-refundable, should they not close on ___(specified date)___ and make it VERY CLEAR that you'll be keeping the earnest money. also put a "kickout clause" in there, stating that the "home shall remain on the active market with backup offers being accepted", and "should another offer come in, with no contingincies, then the current buyer has 72 hours to remove their contingincies and close on the home, or the contrtact with them shall be null & void, and you will accept the other offer".
talk to your attorney regarding the wording, or your realtor, if you have one!
(in regards to your attorney: don't give a verbal extension, make sure you fill out an addendum ASAP, stating the above. verbal offers, extensions, contracts etc are LEGAL, but not ENFORCABLE. make sure you have everything in writing!!!!!!!!!!)
2006-07-26 03:20:17 · answer #1 · answered by thetoothfairyiscreepy 4 · 2⤊ 0⤋
You and your lawyer need to review the contract with a fine toothed comb. If it is like a normal contact there are tons of details to review to ensure you are in the "right."
I personally would only accept the extension with a firmly written clause that states on the day of settlement, they either settle or the contract becomes null and void and you keep the deposit. If they are serious about the house they will agree, if not you should move on.
2006-07-25 14:55:40 · answer #2 · answered by BigDaddy 4 · 0⤊ 0⤋
Honestly I think you should say no deal, take the 10% earnest money and put it back on the market. They aren't closing and there is someone out there that would love to buy it. The housing market isn't as bad as they say on the news. You have given enough extensions and need to chalk it up as a bad deal and put it on the market.
2006-07-25 14:53:39 · answer #3 · answered by banshee 4 · 0⤊ 0⤋
The housing market is tanking and your prospective buyers are more aware of that than you apparently are. The 10% is yours if they do not go through with the deal. In fact it is yours already since they did not go through with the deal. Tell your lawyer to give you the money. I hope that helps.
2006-07-25 14:50:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Tell your attorney to send them a letter by certified mail consenting to an extension of the closing date to Aug. 15th, for which "time shall be of the essence", and if they fail to close on that date they shall be in default and shall forfeit their deposit.
Closing dates are usually estimated dates and reasonable extensions are allowed. But this has gone way past reasonable. Your attorney should have made time of the essence when you consented to the extension to Aug. 3rd.
2006-07-25 15:39:33 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Your lawyer will give you the best advice about this. But if they are under contract to buy the condo, they are legally bound to do so. You are not required to give them any extensions at all.
2006-07-25 14:48:59 · answer #6 · answered by Tim 4 · 0⤊ 0⤋
Don't give them the extension. Let them know that if you don't close on Aug 3rd you'll put it back on the market and raise the asking price.
2006-07-25 14:50:51 · answer #7 · answered by David T 4 · 0⤊ 0⤋
You need to get your lawyer to get on your side. You hold all the cards, he may not want to spend the time, but he knows you can call the shots, although he may resist because it means more work for him.
2006-07-25 14:49:07 · answer #8 · answered by TruthIsRelative 4 · 0⤊ 0⤋
This is a no-brainer. As soon as they missed the date-the place should've been back on the market. Get it there-NOW.
2006-07-25 14:51:17 · answer #9 · answered by Speedy 3 · 0⤊ 0⤋