In my experience, it is mostly a technique used to let the buyer know that he has to step up the pressure on the bank to close this deal, or he may lose his future home.
"Let's either get it closed, or move on."
Many escrows are delayed nowadays because of new lending violations, but technically this demand can finalize a decision by either party. Make sure when you submit an offer there is sufficient time to go through the loan process as well as do all of your inspections, otherwise you may receive one!
What does your Realtor say?
The "Demand to Close Escrow" is a specific CAR form in which if the buyer does not close escrow by a certain date, the seller MAY cancel...and at that point usually keep the buyer's deposit.
Questions like this are best answered by your Realtor....not us.
Grandma used to ask us to stop standing in front of the open refrigerator door, while we were lost in thought:
"You're lettin' all the cold air out!"
Most often, it's a method to get someone to get serious and abide by the terms of the contract. The seller has the RIGHT to cancel but may or may not execute that right. If you are buying a bank owned home, they could go with a back up offer, but that would mean an additional 17 days of contingency etc. (Other sellers in this market may not have a buyer in back up position ready but could....)
Best bet? Get moving and get that escrow closed now.
It's a form that we use to get one party to move forward. The form can be set up for either the Buyer to demand the Seller close the deal or the other way around... not sure which is the case in your circumstance...
Anyway talk to your agent regarding this form.
I hope this helps....
Make it a great day...
Whether you are the seller or the buyer, you need to get legal advice from an attorney so that you can make the most informed decision in your circumstance.
Keller Williams Realty
If the buyer doesn't close escrow after receiving a demand to close escrow, the seller can cancel the agreement, sue the buyer for damages (usually, the deposit up to 3% of the purchase price and/or any depreciation of the property during the time the home was off the market), or sue the buyer for specific performance (which means that the seller can ask the court to force the buyer to purchase the property).