travises, Home Buyer in 91020

Our loan is being delayed and we might miss the closing date. Do we absolutely have to get an extension form signed?

Asked by travises, 91020 Sat Nov 24, 2012

Or if we do nothing, can we and the seller just proceed with closing, say 1-3 weeks after the original closing date?

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Answers

8
Nancy Robins…, Agent, Royal Oak, MI
Tue Jan 8, 2013
Yes. Underwriters wont issue the clear to close if the contract has expired.
1 vote
Jenny Durling…, Agent, Los Feliz, CA
Sat Nov 24, 2012
You'll definitely want an extension from the seller if you expect to be that late closing. Even if you have not removed your contingencies, once you pass the original closing date your deposit could be in jeopardy.
1 vote
James Sanchez, Agent, Burbank, CA
Sat Nov 24, 2012
Yes you will need an extension addendum signed. Your lender may require it and it is safety for you. Without one signed the seller can send you a notice to perform and if you can't close then they can cancel. That might even include keeping the deposit. If you're buying a short sale then you will need to also get an extension from the sellers bank.

James
1 vote
Ron Takeuchi, Agent, Glendora, CA
Sat Nov 24, 2012
H Travises,
You don't have to get an extension signed but most likely the seller will want some assurances that you and your lender will perform, especially if you are thinking of 1-3 weeks. Why wouldn't you ask for an extension of time - better your requesting than having the seller issue you a non-performance notice or cancellation.

Ron Takeuchi
1 vote
Shahe Seuyle…, Agent, Pasadena, CA
Tue Jan 8, 2013
it is recomended that you get an extension
0 votes
carlos parra…, Other Pro, Monrovia, CA
Sun Nov 25, 2012
Definitely better to get an extension signed. This way you negate the possibility that the Seller gives you Notice to perform and limits you to 2 days to remove your financing contingency.
0 votes
Steven Ornel…, Agent, Fremont, CA
Sun Nov 25, 2012
Hi travises,

I agree with ALL of the prior posters!

Assuming you used the CAR RPA version 4/10 to make your offer, the bottom line is that the Seller can issue you a Notice To Perform giving you 2 days to act, and if you do not, cancel the contract.

Para 14C(1) of the RPA states, "If, within time specified in this Agreement, Buyer does not, in writing, Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement then Seller, after first Delivering to Buyer a Notice to Buyer to Perform (CAR. Form NBP) may cancel this Agreement. In such event, Seller shall authorize return of Buyer's deposit."

Additionally, Para 14C(3) requires the Seller to provide you with at least 2 days after delivery of a Notice of Buyer to Perform to make a decision. Also, be aware that you can submit contingency removal subject to the Seller agreeing to take some additional action.

Since ALL of the facts of your situation are not known, you should discuss your "risk reduction" strategy with your Realtor®!

-Steve
0 votes
Cindy Davis, Agent, San Diego, CA
Sun Nov 25, 2012
Yes, yes, and yes. Without getting an extension signed, you are legally in breach of contract and the seller can cancel at any time AND keep your deposit.
0 votes
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