Simply put, without the buyer agreeing to and signing an extension past the 14 days, you, the sellers, will be deemed in breach of the contract and the buyers will have the right to unilaterally terminate the contract and get their earnest money, as well as any due diligence money back. They may also have the right to come after you for any costs that they incurred in examining the property. This would include any inspection fees, attorney's fees, etc.
What I do not understand is why, if the buyer wants to buy, they are not willing to sign an extension. If your broker has been upfront with the buyers, they should understand that the closing delays are unavoidable. Something doesn't add up here. A buyer whom wants to buy a property will do what it takes to get the deal closed, not terminate the contract!
Ask your broker once again to please send an Amendment to the Contract to the bueyr agent to extend the closing date. If the buyer truly wants your property, they will have no problem with extending the closing date!
As far as the buyer wanting to have the property deeded into LLC, you still have a contract with the individual buyers. Should they want to change the contract to the LLC, once again, an Amendment to Contract would have to be signed, reflecting the chnage in the name(s) of the buyer. Another solution is for the individuals to close and then move the property into the LLC, after closing. This is a very common practice with investors.
You best bet is always, though, to consult an experienced Real Estate Attorney to make certain that you understand your rights under the contract, as well as the rights of the buyers. Best of luck to you. Kathleen Turner
However; in most cases where it looks like the buyer is making a concerted effort to get the transaction closed I have had sellers say we will wait X amount of days then they close or lose teh earnest money...
If thsi is seller financing there could be an issue with the situation and legality involved if they want to switch to a LLC at the last minute. You may want ot contact the attorney representing you on the closing and ask for some legal advice...The attroeny woudl ahve drawn up the seller finaicning terms to begin with.
Coldwell Banker United
I would insist that my broker submit an extension. Section 10 of the Vacant land Offer to Purchase and Contract deals with delays and breech of contract and unilateral right of termination. Not agreeing to an extension could be the Buyer's tactic to get back earnest money if the transaction does not complete due to your failure to timely close. If the Buyer does not terminate, I would diligently work on resolving the issue that caused the delay and keep the Buyer regularly updated. Until the non-delaying party terminates the contract, or significant time has passed without communication, it could be argued that you are under contract. Your attorney should advise you on this. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
The NC offer to purchase and agreement has some very specific "time is of the essence" dates that are critical to keep an eye on.
Two of the most pertinent are:
1. The due diligence date, this is an expressed date at which the buyer is supposed to have performed their due diligence in funding the loan, inspections, due diligence requests(repair request) and make sure they are comoftable moving forward. After this date the buyers earnest money deposit becomes "up for grabs" even if through no fault of either party the buyer was not able to get a loan.
2. Closing date: The date at which all parties sit down to close the loan and trade ownership of the property. The buyers wanting to deed the proeprty to an LLC is not unordinary. This shields liability of the homeowner depending on how they are using the property(as an investment or owner occupied). I would grant this change if the buyer is wanting it deeded this way.
There is a really simple "Agreement to Amend Contract" Standard Form 330-T that can be used to extend closing/settlement dates as long as all parties are in agreement.
If your contract is not in writing and within the allowable time frames your contract is not enforceable in court. I hope this info is helpful!
That said, he's not yet commented on the buyers' refusal to sign the extension. At the end of the day, our goal is to make this a successful and positive experience for everyone.
The sales contract was the standard NCREC form for the sale of "vacant land".
That said, our broker has "warned" us that the buyers may be thinking of seller breach, which is why they aren't signing the extension. Not sure I follow that logic, since we're doing everything we can to close the deal, and there's very little we can do at this point to speed the process.
I'm also having trouble understanding how "seller breach" applies, when the buyers don't want to execute the contract as written. I've also suggested that we write up a new contract , listing the LLC as the buyers to remedy that. No takers.