Agent2Agent in Virginia>Question Details

Austin Karve…, Real Estate Pro in Mechanicsville, VA

If close date is not met by buyer, how long is reasonable & customary to hold property for closing? Also, there is no projected closing date.

Asked by Austin Karvelis, Mechanicsville, VA Tue May 3, 2011

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Austin and Julie-I would question a loan officer that finds out a week before closing that a buyer hasn't filed their taxes. You are already 47 days past closing and are looking at an extended period of time before this deal could settle with taxes to be filed. Do you even know when they file their taxes whether they will still qualify for a loan?

I'm not sure why your seller hasn't sent a default notice and moved on but I would talk to your Broker ASAP.
0 votes Thank Flag Link Wed May 4, 2011
Thanks for the responses! More details....we are 47 days past closing! The buyer did not file his income taxes at least since 2008. The mortgage broker found out 1 week before closing that they had not been filed. We were told he did not file because he was getting a refund and didnt bother....just found out that he has to "pay" taxes. As soon as IRA processes refunds, they will start on the paid taxes in a couple of weeks. We have to wait for IRS to process his taxes and then they will provide verification that taxes were done.
0 votes Thank Flag Link Tue May 3, 2011
I agree it depends on why it is being held up, and how consistant your info stream is coming from the other side.
In cases where all were talking, and the closing attorney had a good feel about it, we gave them a few days. If they are not being forthcoming, I would send them the default notice and relist the house for backup offers.
You need to serve your Seller's best interest.
But, if you have dual agency - I would get your Broker involved for a solution.
0 votes Thank Flag Link Tue May 3, 2011
If settlement date is not met by the buyer then he/she/they are technically in default. Any change to the date has to be agreed upon in writing by all parties. As for reasonable, that depends on how long the seller is willing to wait.
0 votes Thank Flag Link Tue May 3, 2011
You have a couple of options. The first is for the buyer and seller to agree to an extension and put that in writing to be signed by both parties. You can also send a notice of default which gives the purchasers three days to get to settlement or the contract is void.

The answer will depend on the reason why the buyer is in default and how long it is going to take to fix the issue and whether the sellers are willing to wait for it to happen.
0 votes Thank Flag Link Tue May 3, 2011
Reasonable: Whatever BOTH parties agree to.

Customary: I'm not aware that there IS a "customary" extension when the buyer fails to close.

You say there's no projected closing date. Again, both parties can agree to extend it. But some agents would advise their sellers to put the house back on the market immediately.
0 votes Thank Flag Link Tue May 3, 2011
Don Tepper, Real Estate Pro in Burke, VA
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