If I have a contract on a new house and have (by example) till 1 st of march to close , can the builder put another contract before my closing date ?

Asked by Idali Alvarez, El Paso, TX Thu Feb 14, 2013

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Bruce Lynn, Agent, Coppell, TX
Fri Feb 15, 2013
There is more to this question....

Why do they give you until March 1st to close?
Normally once it is complete you have a certain time frame like a week to close.

They warn you typically about the timeframe as they are getting close to completion.

If they think for some reason you won't close, like you haven't sold your other home or something like that, they might put a backup offer on the home in case you don't meet your obligation?

We're all guessing here as we don't have enough information. Ask your realtor or ask your lawyer as they can spend more time with you asking you all the needed information to give you a better answer.
0 votes
Don Groff, Agent, Austin, TX
Fri Feb 15, 2013
It would only be a backup contract. You will want to make sure you perform to the contract you have signed and look it over carefully. Hopefully you used a Realtor to represent you so they can be a second set of eyes. It's important to know and understand all parts of the contract so when things happen you know, understand and can react appropriately. Not knowing or understanding is not an excuse and can cost you your deposit or more. So take the time to know your contract and make sure that you are performing as required to avoid any issues during the purchase process.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes
Rick Snow, Agent, El Paso, TX
Fri Feb 15, 2013
Seller's can enter into back-up contracts which only take effect in the event you default on your contract. Keep in mind that without actually seeing your contract it is impossible to tell you exactly what would result in a default on your part. However if you are scheduled to close on March 1st and the house is done and ready to be turned over by the builder, if your financing is not ready you could be in default and the builder may not have any obligation to you to extend your time to close. Again this is just an example. The best thing is to talk to your agent (if you have one) or to discuss it with a real estate attorney.

Good Luck
0 votes
christopher…, Agent, El Paso, TX
Thu Feb 14, 2013
as long as your contract is valid, the builder cannot have multiple deals on the same property active simultaneously. they CAN have BACK UP offers, but those dont have the chance to become official, unless your deal/contract cannot complete as agreed upon by either party.
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