If the seller is past the close of escrow date, what happens next?

Asked by Ruth, Wed Mar 18, 2009

We have purchased a bank owned property. We signed all the documents on March 13th, the close of escrow was supposed to be March 17th, which has past. Our realtor stated the bank is very busy and they have 5-7 bus. days, which I believe has past as well. What rights do we have in Arizona as buyers for the bank (seller) to close?

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Brad Bergami…, Agent, Prescott, AZ
Wed Mar 18, 2009
Unless you have a clause that gives you more than what is in the AAR contract.

If you want the home you don't have much to do but wait. The only recourse you have is to cancel and return of your earnest. I get this question all the time.

If it is bank owned you are probably getting a great deal. Hang in there.
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Robert Kroon, Agent, Phoenix, AZ
Wed Mar 18, 2009
I assume your realtor used the standard Arizona Association of Realtors offer form. On that form, line 360 Terms of Acceptance, you should state the date and time the seller is supposed to return an answer to your agent/broker. Line 363, 364 states that, " If no signed acceptance is received by the stated date and time, this offer shall be deemed withdrawn and the buyer's earnest money shall be returned."

In other words, there is a cut off date and time......this relieve you, the buyer, if the seller does not meet the scheduled date time.

Now, if you want the property.....probably you won't exercise the date time in the Terms of Acceptance.

Also......when dealing with lender owned property.......4 day......March 13 to March 17 is a not a realistic amount of time to get an escrow closed.....based on our past experience.

What rights do you have as buyers for the seller to close. Well, you can ignore the Terms of acceptance date/time and wait for the seller to respond and see what the response is. Most likely the seller will return a counter with...among other things.......a different close of escrow date.......up to you whether you want to accept or not.

In the foreclosure arena today......we all must exercise patience.....everything takes much longer to complete.

Good Luck !
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