Home Buying in 02780>Question Details

M, Home Buyer in 02780

My closing date has come and gone. Can I legally opt out of the contract?

Asked by M, 02780 Mon May 5, 2008

My closing date was pushed back because the sellers are still waiting on a court document concerning their bankrupcy (this is a short sale). There has been no talk of a new closing date because it could still take weeks before they receive their document. Do I have a legal right to negate the contract at this point?

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Lance Holtman’s answer
Lacking an automatic extension of your contract, you don't have a contract to walk away from. It died when you didn' t close, and if it didn't close because the seller could not perform, your earnest money is yours.
1 vote Thank Flag Link Mon May 5, 2008
As the buyer if the sales agreement did not have a contingency for "ALL TIMELINES TO BEGIN WITH BANK APPROVAL" then you should be able to legally back out of the contract., hypothetically. And as always the seller and buyer will have to come to a mutual agreement over the earnest $$ deposited. Are you working with a realtor? As a buyer in Portland Oregon, using a realtor is free. I would seek legal counsel about your particular situation or contact a local realtor with short sale expertise to ask advice. Have a copy of your sales agreement and all addendums when you meet. Every state has differnet laws.
1 vote Thank Flag Link Mon May 5, 2008
The answer could be yes or no depending on the language in your purchase and sales agreement. I would recommend speaking with an attorney to have them review the situation. I can recommend a few attorneys that would be able to help you out. They may even review the situation first and explain if they can help. Feel free to contact me so I can have you connect with them.

My only other question would be, do you have a buyer's agent? A buyer's agent should be able to advise you on the situation initially? If there is no buyer's agent representing you...then I would speak with an attorney.
1 vote Thank Flag Link Mon May 5, 2008
You really need to speak to your attorney.
1 vote Thank Flag Link Mon May 5, 2008
Yes, if your contract has expired, the P&S should give you a closing date. If the closing didn't happen, then you no longer have a contract.. UNLESS.. you signed an extension to close that you may or may not remember?
If you don't want to buy the home and you are "out of contract", your agent should have you and your seller sign a deposit release. You should also consult an attorney if your earnest money isn't returned.
0 votes Thank Flag Link Wed Jul 23, 2008
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