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Susan, Renter in Scottsdale, AZ

Are any cost incurred by extending the closing date by 2 days?

Asked by Susan, Scottsdale, AZ Wed Feb 16, 2011

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David Rogoff and Bonnie Chernin’s answer
I would consult with my attorney if there are financial penalties for cancelling at the last minute.

As a layperson I would think the reason (i.e. illness / death in family etc.) for the delay would have some bearing on the outcome.

Bonnie Chernin and David Rogoff
Fillmore Real Estate Branch #19
2926 Avenue J
Brooklyn NY 11210
917-593-4068 (David’s Cell)
646-318-5031 (Bonnie’s Cell)
davidrogoff@fillmore.com
0 votes Thank Flag Link Fri Feb 25, 2011
BEST ANSWER
Dear Susan:

You question is a little vague. If there has already been a formal closing date confirmed by all parties and you have to cancel the same day there may be some financial repercussions. If the definitive closing date has not been set then you probably will not have a problem.

In most contracts of sale here in Brooklyn the closing date is what you call "on or about" meaning that there is flexibility. Usually this is considered to mean that you can close 30 before or after the date in the contract. It is also a kind of gray area and can stretch beyond the 30 days if need be. If either party takes too long the opposing party can sue for "specific performance" which is a legal procedure that will force the other side to close right away (even at that it usually takes about a week or two for that to happen).

If your opposing party has already sued for specific performance and you are still not willing to close, you can open yourself up to a lawsuit and get sued for additional damages. You need to speak to your lawyer about all this!! Also, if the contract closing date was worded as "time is of the essence" then you have to close on that exact date no matter what, however this is not the norm (check on that with your attorney).

If you are sitting at the closing table right now and trying to postpone, you will most likely have to pay more fees mostly involving the mortgage banker and attorneys. I can't tell you exact amounts without having more details on the sale. If you want contact me and I would be more than happy to discuss this with you further and give you more information. In the mean time YOU MUST SPEAK TO YOUR ATTORNEY! Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Wed Feb 16, 2011
The fact is, if you cancel on the day of the closing the lawyers, bank attorney, payoff bank and title person will charge you for a full day of work missed. These people make alot of money per hour so it's important that you know for sure if you can do the closing or not. Fees can run you a few hundred dollars or more.

Rhonda Holt
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Fri Feb 18, 2011
Susan a contract involves and affects many people. There are stipulations in the contract.there is the mortgage and the bank conditions. Then there are the sellers and the lawyers. I suggest you contact your bank as well as your lawyer, it should be fine but they are the ones to give you the correct answer.
0 votes Thank Flag Link Fri Feb 18, 2011
Lee, no problem at all and no need to apologize--again, here we do things differently, even with REO's the attorneys control the deal--the contingencies, closing dates (on or about), etc., and agreed oftentimes the answers can be found in the contract.
0 votes Thank Flag Link Thu Feb 17, 2011
Anna,

I am sorry if my last post sounded Sarcastic or aimed at you personally. (That was not my intent)

I was just thinking a little out of the Box and throwing out the fact that the main thing is always; what is actually written in the contract and to not focus on anything that might be general or possible.

i.e. If it is a Bank owned prop. the contract would most likely be written as dictated by the Bank and they could be from anywhere. Also, If it is a Bank owned they would probably inforce an actual date and a per diem. (just 1 example...)

Anyway, I cannot believe how many questions abound on these posts that are completely answered correctly by simply reading what their contract says!

Cheers!
0 votes Thank Flag Link Wed Feb 16, 2011
Lee, if this person is purchasing in NY, please realize the attorney for each party handles all contract details, and closing dates are on or about...fortunately, or unfortunately, real estate in NY is practiced totally different...
0 votes Thank Flag Link Wed Feb 16, 2011
NO they are NOT "Generally" On or About...

Susan, Find out Exactly What yours says... (that is all that matters)

Our standard contracts specifically state as follows;

CLOSING DATE. This transaction shall be closed and this agreement shall expire, at 11:59 p.m. local time on the _______ day of________ 2011(closing date) or on such earlier date as may be agreed bt the parties in writing. Any extension of this date must be agreed to by the parties in writing via the closing date/possession date amendment or equivalent written agreement.
0 votes Thank Flag Link Wed Feb 16, 2011
Hi Susan, In my area, at times a situation arises where one party may need to extend a scheduled closing date. In that situation, an extension must be agreed upon by both parties. Generally there are no cost incurred by either party unless the contract stated otherwise.
0 votes Thank Flag Link Wed Feb 16, 2011
Check with your attorney, closing dates stated in contracts are generally on, or about, dates.
0 votes Thank Flag Link Wed Feb 16, 2011
P.S. In our area, we don't practice "On or About" in our Standard R/E Contracts. Some things are Local and/or Regional...
0 votes Thank Flag Link Wed Feb 16, 2011
What is written in your Purchase Contract?

Assuming that the hold up is on your end, If there is a "perdiem" amt. on the contract, you would be held to i.e. $50.00 or XXX per Day. You will also need to get an approved/signed by all parties, extension addendum. Void of this, the Contract is void on orig. closing date and you would be in breach of Contract.
0 votes Thank Flag Link Wed Feb 16, 2011
Unless your contract is written otherwise, typical NY practice (especially downstate) is on or about a certain date. That means 30 days prior to until 30 days after.

And even that can be extended.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Wed Feb 16, 2011
Hi Susan,

If the 2 day extension causes your rate to expire than yes. The lender will charge a fee per day to extend your rate lock. In regards to any other fees, you should speak to your attorney.

Best of Luck to you!

Rocco Guercio
Loan Officer
0 votes Thank Flag Link Wed Feb 16, 2011
You must be in the final closing phase ... if Title needs a few more days to close then both sides will sign a waiver. No body in the right mind will ask for a few bucks now to delay the closing, except for HUD/Fannie ... They are unpredictable.
0 votes Thank Flag Link Wed Feb 16, 2011
Most likely not, but you have to make sure this doesn't effect the rate lock. Best best is to speak to your attorney for the most accurate information on the subject.
0 votes Thank Flag Link Wed Feb 16, 2011
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