Home Buying in Los Angeles>Question Details

Srarmy, Home Buyer in Los Angeles, CA

First Time buyer and escrow is suppose to close on the 26 now my realtor is stating we need an extension due to the seller not installing

Asked by Srarmy, Los Angeles, CA Fri Jan 20, 2012

the appliances should i grant the extension to the 31? The seller is suppose to have installed them 2 weeks ago. I'm suppose to move out my apartment on the 31st and it's rented already on the first.

Help the community by answering this question:



If you want the house, grant the extension. Have your realtor draw up an addendum that will give you a daily per diem should the sellers not be ready to close by the 31st. I generally recommend that the amount be what your daily PITI on your new home would total. PITI = Principal (loan), Interest (loan), Taxes (property), Insurance costs per day plus any storage fees you may incur OR your actual daily expenses to stay in your apartment or a hotel, whichever is higher.

Talk to your landlord about getting a couple of extra days in your apartment as well. Generally, people will try to work with you under such circumstances - but find out now.

Ron is right. Most of the time there is something that comes up in a real estate transaction that was not expected, but there is almost always a solution.

Good luck!

Angie Simpson
Coldwell Banker
1 vote Thank Flag Link Fri Jan 20, 2012
I would agree with both answers by Lisa and Lee ... and most importantly don't panic! ;) Like Lee said, many landlords experience these delays and are willing to pro-rate the rent for a few extra days. If weeks or months are needed, that's another issue ... but a few days typically works out just fine.

Out here in Idaho we have our title companies do what's called an "Escrow Holdback". This is essentially the same thing that Lisa suggested by holding some portion of the sale proceeds from the seller in lieu of their finishing the improvements. In Idaho we write our own addendums to the contracts that lay out explicitly what amount is being held back, what improvements need to be completed, when the improvements must be completed by, and what happens if the improvements are not completed (i.e., a default of contract ... "failure to perform"). The buyer and seller both have to sign this addendum, and the buyer must approve completion of the work in writing through the title company before the funds are released to the seller. Typically the holdback amount is 1½ times the actual cost of the improvements. You might notice that the seller is very motivated this way to complete the improvements as agreed, otherwise the seller may lose 1½ times the actual cost to make the improvements.

If it's no longer feasible for the sellers to complete the work, you can negotiate a reduction on the sales price to compensate you for completing the improvements yourself ... be sure your lender allows this 1st though before agreeing to it.

Hang in there, you're closing is just around the corner. Hope this helps!
Web Reference: http://www.GetMovedNow.com
1 vote Thank Flag Link Fri Jan 20, 2012
Extensions are common. Make sure you get an extension regarding the installation in writing. You can also have the seller credit you the cost of the appliance and installation. Also, talk to your lender about a different closing date. Most landlords understand these situations, so I would not panic. They can pro rate the rent. Your agent should give your advice regarding your situation. I hope this helps.

Good luck,

Web Reference: http://www.homesbylee.com
1 vote Thank Flag Link Fri Jan 20, 2012
Go ahead; you want the house, right?
You might hit them with $100 per day, per diem for the storage and a hotel room.
Rarely does everything go according to plan; you planned this pretty tight, didn't you?

Good luck and may God bless
1 vote Thank Flag Link Fri Jan 20, 2012
Appliances should not take that long to install. But if they do, you can also holdback money and continue with your closing. Have an attorney draw up the holdback so as to be clear what is expected of the seller and by what time. Recommended holdback amount could be 1 and 1/2 times the expected cost. Hope this helps
1 vote Thank Flag Link Fri Jan 20, 2012
Talk with your lender and agent before granting any extension. You may have a loan lock which expires.

Perhaps you have addressed this by now and hopefully all is well.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Sat Jan 28, 2012
Srarmy, it's a good idea to have the appliances installed before you close, so if allowing an extension of 5 days will get it done, go for it. You might want to check with your lender as well (hopefully your rate lock won't affected). You should also figure out a reimbursement amount for every day the Seller doesn't perform as agreed. This would include daily rate for storage of your furniture, and a hotel for you.
0 votes Thank Flag Link Sat Jan 28, 2012
Dear Srarmy,
In a perfect world, everything would be exactly on time with no glitches. Unfortunatly, that's not the world we live in and we must allow some flexibility for situations that do not happen in a timely manner. I see no reason not to grant the extension, provided there is a goal date in the extension.
0 votes Thank Flag Link Sat Jan 28, 2012
Most likely you will have to delay closing until the 31st. The delay is the fault of seller, the per diem should be requested with specifics of what it will cost you to be in temporary housing, etc. It will all work out, seems like it will not. They say the top threes stressors are: death, divorce and moving....deep breath, pieces will fall into place. The seller may be so motivated with the the per diem that he/she get's it into gear. Best of luck to you!
0 votes Thank Flag Link Sat Jan 21, 2012
Time Of The Essence, In real estate every transaction is different
if you like this place you need to act fast! talk to your agent and escrow officer grant the extension let escrow draw up the per diem (addendum ) plus other cost for staying in the apartment if not closing on time hope you have a nice landlord ,make sure everything else is in control from your side (loan insurance etc)
be positive ,welcome to the Ownership
0 votes Thank Flag Link Fri Jan 20, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer