I am in the midst of closing on a Condo. I have secured financing and have been cleared to close. Our "on or about" date for closing is Sept 30th.
Our seller has just informed my lawyer that they wont be ready until Oct. 14th. Thats a Sunday so its not a serious date. It was a voicemail so its a vague thing due to "problems" on the Sellers new place.
Her new place is vacant and its an all cash deal used from my sale. This seems like it should have been smooth sailing.
My rate lock will expire on Oct 12 and I will have to pay to extend at that point.
The Seller floated the idea of us closing first and then paying us only the HOA & taxes but no mortgage or "rent" until they close. I have rejected this out of hand as that is inreadonable but I am not taking on the problems of a landlord.
The Seller is unwilling to close and move out to a relative or hotel so she has to go into a place she is buying.
The Seller has been slow to respond to everything in this process and the lawyer is not really responding to my lawyers calls asking for a reason on the delay.
My lawyer doesnt seem concerned which I dont see how thats possible. She doesnt want to push them too much.
My situation is that we sold our CoOp and moved into our In-laws. This has been a few months. It is absolute misery.
My daughter is ready to start pre-K but cant because we didnt want her to start in 1 school for a few weeks and then move. We are moving to different town. When that was decided we thought we were closing about Sept 30th.
We werent informed of any potential problems until Friday, which was also the day I recelved financing.
Any advice on anything I can do?
If for example we close and she stays. Legally I become her landlord.
So if her "problems" continue or the deal falls apart entirely, then what?
She could stay on end. My lawyer, her lawyer are real estate lawyers so they go away the day I close.
She could in tbeory take as long as she wants to find a new place.
If she stops paying me, which she already indicated opposition to - I have to get her evicted which is a process that could take 6 mths to a year.
She opposses paying because she said she didnt have a mortgage so she isnt paying to live in her home. She wont respect thats its now mine and not hers.
So its just not an option I can consider.
Thank you though for responding.
AND a large portion of the seller proceeds will be held in escrow until move out (and a post-move inspection). That will be a big stick to move their butts.
If they won’t agree to these things, you walk away. Hopefully there’s a significant penalty in you contract for failure to close.
eat your pride and do what you need to do to close and not spend more money than you need to
Which ever way you go, make sure the agreement is legally binding. A fully executed rider.
Its going to cost you more money no matter what. Either prepare to pay it or walk away. Since she has the right to extand the closing, you can't force her to pay for your added expense.
I don't know why this happens so often, but it does. Just make sure you get the house and your kid can go to school. The added expense she just laid on you will be forgotten in due time.
If they don't then you have the option to sue them for breach of contract and collect damages. If they pull out of the deal altogether then you can sue for specific damages (if you really want the condo).
If you decide to go the rent way then a new deal must be made with that in the contract. Once you close the place becomes yours and a clause in the mortgage states that you must take possession. if you don't and they the seller occupies and its not in the signed contract then it becomes mortgage fraud.
Choice is yours. I would demand that they honor the deal or I would sue for damages.
Which ever way you go, make sure the agreement is legally binding. A fully executed rider.
Its going to cost you more money no matter what. Either prepare to pay it or walk away. Since she has the right to extand the closing, you can't force her to pay for your added expense.
I don't know why this happens so often, but it does. Just make sure you get the house and your kid can go to school. The added expense she just laid on you will be forgotten in due time.
The seller does not have the right to pull out or change the closing deal unless its still within the due diligence period. Which it might be.
So they are still within their time. That would be October 30th.
I am really concerned as to why we dont have a reason for the delay. She is buying a vacant unit on an all cash deal from my sale. This should be we close and then the next day or even same day, she closes.
So what is the hold up? Why is there a delay necessitating 3 weeks of time?
Is this something like - her Seller is out of State and cant fly in due until mid-October for whatever reason. If thats the case, I relax and calm down and it all will work out.
If its something else like they are still haggling over money, etc. I am getting worried that her deal falls apart and therefore mine may too if she refuses to close as she has to “find” a new place.
I obviously have to accept the mid-October close date.
I am currently thinking that I am not accepting her as a renter. We do have a 5-day agreement where she has 5 days to vacate after we close. Obviously, Im okay with that but I am not accepting anything else.
I am currently thinking that if she tries in any way to push off closing again past the mid-October close date that I simply tell them they have until the legally required October 30th close date or I pull my money out of escrow on October 31st and sue her for breach of contract.
So Oct 14th seems legal
It really was no problem whatsoever. I never felt like a "landlord", not for a second.
My situation was that the seller was a neat freak, she admitted she had a problem with being overly orderly. I saw it with my own eyes. She's a headcase in that way. So I knew I had nothing to worry about, in regards to the condition she left the place. In fact, she told me that on August 29 she stayed up until 5:00 AM repainting most of the place.
It's a business deal, a money deal, even though it is a home. Be rational not emotional in your decisionmaking.
Had the happen 2 times with wife about due it sucks good luck