I am in between a rock and a hard place. Have a contract, being processed etc…
I NEED an extension of time. How does one word that on an addendum. Or can you just write … Extension of time until …
Do you need an exclusive right to purchase it? I was told yes by some. No by others.
Once you have a contract and are approved doesn’t extension have to be done if individuals reviewing the documents are not finished processing? I was told owner can back out. Is this true?
Help Please.
It’s always wise to know your specific state’s laws concerning REI, or have the ear of an agent or attorney that does.
That said, do you NOT have an exclusive right to purchase? You say you have a contract, is it not a purchase and sell contract?
If the term (or similiar) “time is of the essense” has not be included with your scheduled closing date, then usually you have a “reasonable” (whatever reasonable may mean) amount of time to get your financing in order as long as you have followed through with the terms of the contract and the delay is through no fault of your own. Example: The contract date is 7/31/06 and you waited until today to start looking for a loan would not qualify you to receive a “reasonable” amount of time to close.
As to getting an extension, is this purchase being handled thru an agent or representative, or between to personal parties (person-to-person)? If through a professional, then they should know how to handle asking for, and getting, an extension.
If between individuals, then inform the seller that you are still intending to buy the property, but the financing is taking longer than expected (be prepared to back this up), and that you’d prefer to have a written extension period added to the contract. You may even want to offer additional earnest money for the trouble.
Raj
Roger J
Thanks. We have an attorney, he is just out until Tuesday.
Yes, we have done everything asked. Paperwork is just being delayed due to processing.
It is being handled through an agent. I was just told the buyer wouldnt accept extension. But I thought I did have right to one since it is not my fault.
You just helped confirm. Thank you
Betty,
Again, check your state’s laws concerning. Just because some know-it-all on a REI forum said it doesn’t make it happen. 
First, make sure that you followed the terms of the contract to a T. Did you get your financing in order on time? Did you get your commitment letter from your lender to the seller when the contract stated?
Of course, I’m assuming financing holdup is the problem. What paperwork exactly is being held up?
“Reasonable” timeframe for most people usually fall within a week, maybe two. Any longer and it’s just a plain delay. And again, that’s assuming that your contract and your laws allow for the reasonable timeframe extension.
Don’t be confrontational about this either. That’ll only cause more problems for you. If you can actually close and you’re just waiting on paperwork to finish, then ask “why” they won’t consider an extension. Do they have a backup buyer that is going to be able to close on the property faster than you can for the same or more money? Has this deal been a series of problems that they’d rather NOT close at all than wait a week? Do they simply want some $$$ to wait another week? In short, what’s the problem?
Raj
Here is what my attorney always tells me regarding dates. Unless the contract dates say “time is of the essence” it is ALMOST a guarantee you won’t be sued for specific performance or non performance if you are late by up to 14 days and complete the transaction. (In her opinion with 25 years of RE law.) Or if you are sued, itis doubtful they would win.
The sellers would have to prove you caused them measurable damage and sue accordingly.
If you are holding up the purchase of their next home, there could be consequences in cases like that.
If they are just being dicks, and won’t sign an amendment just communicate with them once or twice a day and give them a report on your progress every step. Send the amendment anyway. If it’s in front of them, they may sign it. It can be a very anxious time for the seller. Keep that in mind.
On the contract addendum the extension can read.
The closing date (set forth in paragraph X of the contract) is changed from (orig date) to (new date).
Good luck,
Jeff and Roger,
I appreciate you assistance as this has been very stressful :eyecrazy:
Loan Processing is the delay. I have kept the other party informed daily on any breaking news.
There is a backup. I did ask if they were going to close sooner than I. I asked that a few days ago. I was told no. But they haven’t signed the extension yet.
Thank you for all of your help.
Bettysue