Home Buying in 78758>Question Details

sbabst, Home Buyer in Southfield, MI

S won't extend contract end date from 5/31 to 6/4. Can B get earnest $ back? M/F got appraisal 5/29; 5/31 closing reset to 6/4; S refused to

Asked by sbabst, Southfield, MI Mon Jun 3, 2013

extend.

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Shannon Black-hartzell’s answer
Good Point Shawn...But if you read Texas's Third Party Financing Addendum there is a number of days section listed...After however many days was filled it(Let's say 20) it states Buyer may give written notice toSeller within those days after the effective date of this contract and this contract will terminateand the earnest money will be refunded to Buyer.--- If Buyer does not give such notice within
the time required, this contract will no longer be subject to Credit Approval. Time is of
the essence for this paragraph and strict compliance with the time for performance is
required.

TL;DR----If in Texas you don't perform in the days listed on the Third Party Financing addendum or give notice before those days, you can lose your earnest money.
0 votes Thank Flag Link Mon Jun 3, 2013
Check the contract to see if you selected "Contract Subject to lender approval" or "Not subject to lender approval".

On Texas promulgated contracts, this is on the first page.

Then, simply explain to the Sellers that the closing cannot take place due to appraisal delay and loan processing delay.. These are out of the Buyer's control, and while the Buyer and Sellers can still show up at the Title company to close the deal, unfortunately the Title company won't have the paperwork for you to close. So, by default, the closing is bumped back, at no fault.

Both sides are trying to perform.

Tell your Agent to engage the Title company to help explain this to the Seller side.
It will be a long haul nightmare for the seller to try and keep your earnest money and move on to another Buyer.

Check on what I said first to see what your contract states. If you selected "Not" subject to lender approval, you might have to beg for a little forgiveness, or engage an attorney immediately.

Either way, if you're still trying to perform on the contract and the seller is drumming up an attempt to keep your earnest money, they have a real rude awakening coming, and you definitely need to get a lawyer asap to contact them, etc. Get with Title company immediately!! They have a lawyer on board that can help too.
Web Reference: http://shawnmon.com
0 votes Thank Flag Link Mon Jun 3, 2013
Please read your contract carefully. It should lay out pretty clear that if you fail to close by agreed close date what the Seller is entitled to keep. In Texas "generally" if a Buyer does not preform by agreed close date, even if it was financing banks fault, Seller can choose to keep earnest and terminate the contract due to non-performance.**Again this is a general scenario of what could happen in Texas and in NO WAY reflects absolute, nor am I giving you advice/or opinion on what is happening to you and your specific situation** As stated by Dallas Agent below, we can not look at your contract, nor can we give specific advise or opinion on a contract that we were not a party involved from the beginning. Call your Realtor or if that doesn't help call his or her Broker for direct advice or a Real Estate Attorney. Best of luck to you!
0 votes Thank Flag Link Mon Jun 3, 2013
Why would seller do that??? They have a buyer to buy their home. Closing dates move all of the time. I believe Buyer can get $ back.
0 votes Thank Flag Link Mon Jun 3, 2013
I have been on the sale side of this scenario and we have kept Earnest Money of a buyer that did not perform...They kept blaming the financing bank, the bank was blaming the buyer for not getting docs over in time, and the whole time we had a home off the market for 45 days. We terminated the contract and kept earnest. Hard to swallow on the Buyer end, but we found out after the fact they had done the same 2 other times. We found a new buyer 3 days later and closed cash in 7 days.
Flag Mon Jun 3, 2013
Usually the closing date is a goal to try and reach and it is not cast in stone. Unless terms like Time is of the Essence are used the closing date can pass without either side being able to terminate unless both sides agree to -- as long as reasonable efforts are being made to reach a closing. Your seller sounds like a hot head so you may need to have a lawyer straighten them out.
0 votes Thank Flag Link Mon Jun 3, 2013
sbabst,
The contract governs the answer. Consult your REALTOR for direction.
I will say that once a contract is executed any further changes are requests from one party to the other not a mandate. The contract spells out what the remedies are for each party.

As I often say to prospective clients, "An agent that know what all the written text within the contract means is the one you need to have on your side representing you. Anyone can fill in the blanks."
Best wishes,
Bill
0 votes Thank Flag Link Mon Jun 3, 2013
It is all controlled by the terms of the contract, and we cannot give legal advice here. I wonder why the seller won't extend though? Perhaps a higher offer waiting in the wings? Tight closing dates can often be difficult to achieve, for many reasons. Most lenders would rather see longer contracts, but many agents like to show 30 days. It often endangers the buyer's earnest money.
Good luck!
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
Web Reference: http://www.thecokerteam.com
0 votes Thank Flag Link Mon Jun 3, 2013
I would contact a local real estate attorney if you're not getting the answers you need from your agent.

Good luck,
Gina Nyland, REALTOR, GRI, e-pro
Prudential Texas Realty
The Nyland Team
0 votes Thank Flag Link Mon Jun 3, 2013
You really need to review the contract with your Realtor. There are several areas in a contract where you can "get out" but without seeing the contract and how it was written we cannot tell you what your options are. Your agent can and that is who you need to be having this conversation with.

I always go over all of the "get out" areas in a contract... Conversely when I am representing the seller I use those same parts of the contract to "tie down" the buyer so if they in fact do back out they will lose their earnest money.

Either way know that both parties are responsible for performing to the contract, that in fact is why you both signed it in the first place. If one party does not perform it can be more than the earnest money that is in jeopardy. The other party can sue for specific performance. That rarely happens but it can. So look over your contract with your agent to see where your options are.

Hope this helps.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Mon Jun 3, 2013
All is governed by the executed sales agreement NO professional can render an opinion unless the entire agreement is reviewed. Your Realtor should be assisting you.



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0 votes Thank Flag Link Mon Jun 3, 2013
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