Can a builder extend a closing date due to their personal problems?. The closing date was suppose to be August and they are extending to March?. The contract mentions the closing date but it's not too clear.
Also the new agreement they want us to sign mentions that 'we are mutually agreeing to extend the contract and no late claim is being made'. Surely this mean we DON'T have to sign it and we will be compensated If we do.
Please help, I need to sort this out today.
2007-05-24 02:45:57 · 6 answers · asked by Manj 2 in Business & Finance ➔ Renting & Real Estate
I actually want to keep this house but I want to be compensated for my loss. I called them today and they said 'If I don't sign then they won't build. even though it's a semi?.
2007-05-24 03:13:32 · update #1
Closing dates get changed all of the time. On pre-existing homes they can be moved a few days or a few weeks. On a new construction I can see the date being changed by months.
No, you don't have to accept the change. You can cancel the deal. Whether they will compensate you for the delay, you need to negotiate.
For example, lets say you had a lease and it was going to be up in August. But now you would need to sign a new lease and the landlord will only do 1 year leases. Now you have a problem, because you need to extend for six months but the landlord wants a year.
You are moving from out of state in August for a new job and that is why you needed to have a place to move into. Now you will need to find a place to rent for 6 months until the house is finished.
Worst case would be that you have a lease and given the landlord notice. They have already found new tenants. You have arranged the movers. Then the builders wants to delay the closing by a month. Now what?
Figure out if there are any monetary losses or expenses you will incur because of the delay. Bring this to the builders attention. Ask them to compensate you for those.
Good Luck
2007-05-24 03:02:42 · answer #1 · answered by edwardogden2000 3 · 0⤊ 0⤋
If I were you, I would go back to the original paperwork you signed when you and the builder reached mutual acceptance on this deal. In real estate transactions, it's not uncommon for closing dates to be extended a few days, weeks or months sometimes on new construction homes. If you still want the house and are willing/able to wait, then I would suggest you find out what this delay will cost you, monetarily speaking. You can sign and extend the closing date, but also include that the builder will pay for any losses you may have suffered because of this delay. A realtor can help you with that paperwork and language.
2007-05-24 06:51:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The title company sets the closing date when all paperwork is in like the Certificate of Occupancy, mortgage, title search, etc. Your purchase agreement should have a clause that closing should not exceed a certain date. If the builder supplied the PA, then it's probably not clear as you said. Ask for your deposit back, move on or wait till the home is completed.
2007-05-24 02:59:11 · answer #3 · answered by Harley3000 2 · 0⤊ 0⤋
You need to analyze the terms of your original contract. If there is a specified completion date, along with a monetary term to be paid by the builder if this completion is not met, then you have a right to be compensated for his lack of performance.
The fact that he is asking you to 'sign off' on such a claim indicates that he expects to pay a penalty legally for his lack of performance.
Always use caution when dealing with such situations. If you refuse to agree, even though you have the right to do so, you will certainly irritate this builder. Bear in mind that, unless you are present on the property every moment of construction, you have no idea what he is doing. Will he cut corners in quality elsewhere because you made him pay the performance penalty? Weigh this carefully and decide whether it's that important to you to force him to comply.
2007-05-24 02:58:57 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
I think I would find another house. That's ridiculous to expect you to wait another 7 months. You do not have to sign. If you do not want to sign then you are out of the contract. They are the ones who cannot hold up their end of the first contract. You have to decide if you really love this house and neighborhood and don't think you'll be happy anywhere else or if you want to look for something else. If you want to find something else then tell the builder that you cannot wait until March for a house and therefore you won't sign the contract. If you have put a deposit on the house then tell the builder you will expect your deposit to be refunded immediately. (Technically, I think they might have 30 days to refund it but you don't have to mention that.)
2007-05-24 02:53:00 · answer #5 · answered by angela 6 · 0⤊ 0⤋
It relies upon on the shopper's loan many times. in the event that they're paying money they are in a position to close as quickly through fact the enterprise could nicely be out of the valuables. in the event that they're getting a loan it may take everywhere from 2 to 6 weeks relying on the loan. VA, FHA and a few first time shopper classes take somewhat longer through underwriting technique countless the time.
2016-10-13 07:57:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋