Do the dates & deadlines other than Loan Conditions really matter?

Asked by Karen W., Denver, CO Fri Dec 2, 2011

I'm in process of selling my home and the buyer has asked to extend dates and deadlines. Today its the appraisal, next I expect it to be the inspection which is due in three days. Given that the buyer has an arbitrary out of contract anyway with Loan Conditions, what's the point? If he doesn't like the appraisal, or the inspections, he can get out on the loan. I've given in on each point, don't plan to with Loan Conditions. Honestly, do the other deadlines really matter? Why would I decline the appraisal or inspections deadline?

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10
Pete Nemeth, Agent, Greenwood Village, CO
Mon Dec 26, 2011
Dates and deadlines do matter. In this day and age when we don't do deals on a handshake buyers and sellers alike freak out when deadlines are skipped. Inspection is important because if there is an issue then both parties need to know before the buyer spends too much time under contract and the seller has the property off the market for longer than neccessary. If both parties are dead set on concluding the transaction then deadlines are easily extended to accomodate both parties. No one wants a transaction to drag on forever.In most cases when I do a deal on a Denver or Parker, Castle Rock home, everyone is eager to get the deal concluded so we are always striving to stay ahead of the deadlines!!

Hope this helps!
Pete Nemeth
303-358-8901
http http://:www.PeteSellsDenver.com
0 votes
Ron Rovtar, Agent, Boulder, CO
Mon Dec 26, 2011
Hi Karen: It looks like the answers were pretty much unanimous. The dates and deadlines do matter. You asked this question at the beginning of the month, so hopefully the information here helped you negotiate your way to a good and successful closing. Please let us all know what happened!

Best, Ron
0 votes
Lane Walsh, Agent, Denver, CO
Thu Dec 22, 2011
Yes, the dates and deadlines do matter. If the buyer fails to meet their deadlines and you refuse to extend them, they can exit the contract. The earnest money would be in dispute but both sides agree to meet their deadlines n good faith.
Web Reference:  http://dwell-denver.com
0 votes
Brian Burke, Agent, Highlands Ranch, CO
Wed Dec 21, 2011
Dates and deadlines do matter and should be respected and met. Sometimes you can not meet them and must extend deadline.
0 votes
Ron Rovtar, Agent, Boulder, CO
Tue Dec 20, 2011
Hi Karen:

Yes! All the deadlines matter and, unless you want out of the contract, you probably should be flexible about extending for good reasons. It can be mildly annoying, especially when a buyer must extend several times through no fault of his/her own (i.e. the bank doesn't get the appraisal done on time, a contingent purchase gets delayed, all the good local home inspectors are backed up, the bank or title company require a new improvement location certificate, the home inspector suspects a problem that requires another kind of inspection, a previously unknown lien has to be removed, you must repair wind damage before closing. . . .The list is endless). Only an attorney can answer legal questions, but I would avoid anything that could be considered a breach of the contract, including getting lax about deadlines. And, BTW, I also would check with an attorney about how the courts see situations where a buyer uses the wrong objection deadline to get out of a contract because the correct one already passed.

With lenders being extremely careful these days, multiple extensions seem to be the rule, not the exception.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
ron@rovtar.com
http://www.rovtar.com
0 votes
Steve Matthe…, , Denver County, CO
Sat Dec 10, 2011
Karen
I can hear the frustration in your question. The entire home selling process can be a bit challenging these days, but the ultimate goal is a successful closing. All dates are very important and I applaud you for staying on top of them and watching them so closely. The first and most important piece of info you need to obtain is why do they need an extension. If they cant give you a real meaningful answer, then you have to weigh the costs and benefits to agreeing to the extension. Is it a couple of days or is it a week? Do you have other buyers waiting in the wings? Was your listing hot and getting multiple showings per day when it was active. Keep your eye on the prize (the closing) and keep a calm head so you can make smart decisions for yourself. I know that sometimes it feels like you are doing all the giving and the other side is doing all of the taking. It is often very difficult to be the "smart one" in the transaction, but the smart one usually wins in the end. Best of luck to you and have a great closing!
0 votes
Shawn Ryan R…, Agent, Belleville, NJ
Thu Dec 8, 2011
absolutely...once attorney review is concluded. either party can cancel contract if dates and deadlines are not met. before attorney rev is concluded, all dates are merely targeted estimates of when things should happen
0 votes
Robert McGui…, Agent, Denver, CO
Thu Dec 8, 2011
Karen,

Dates and deadlines really do matter in a contract for several reasons. 1st, it is a contract and it is binding on the buyer and binding on you. Let's say you had a backup offer that was better than the original. If the buyer said 'let's go ahead and extend these dates for my benefit'; you could say no and take the better offer or decide to wait for a better offer where they have there ducks in a row and are ready. Multiple extentions often mean there is a difficult buyer or a new, inexperienced, or incompetent lender or agent is involved and the deal may not close anyway. You can also say no and push the buyer to move more quickly and get things done in a timely manner.

There are many important deadlines in the contract other than the Loan Conditions deadline. Although the new Colorado contracts are weighted toward the buyer, the deadlines also give you certain rights in the process. For instance, if the Lead Based Paint Disclosure is not submitted with the offer, the contract is 'void' at that time and nonenforceable unless you choose to move forward. If I am working with a seller I will often counter any extended deadlines to make sure the buyer gets things moving along quickly in case there is a problem and the buyer wants to use an out. It is better to know riight away or asap instead of dragging it out and missing weeks of time when you could be actively marketing your home. Your Listing Broker should explain all of these things to you and of course be looking out for your best interest in the process.

Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
1776S. Jackson St. #412
Denver CO 80210
Direct - 303-669-1246
http://www.theRobertMcGuire.com
0 votes
Joe Higgins,…, Agent, Miami, FL
Fri Dec 2, 2011
The dates on the contract DO matter. Sellers want short time periods.....buyer's longer. Is there a Realtor listing your property? If so, it’s their job to see that the dates and timeframes on the contract are reasonable and met. If not, I highly recommend an attorney on your side to manage your transaction. Buyer's may escape out of the contract with a financing contingency, however, they must show due diligence when applying for a loan. That’s why it’s always good to get a “pre-qualification” letter from them from a reputable lending source in the beginning. Good luck!!
0 votes
Paul Marchi, Agent, LAGUNA BEACH, CA
Fri Dec 2, 2011
Well, in a buyers market, deadlines are a push to move things in the right direction....towards a timely closing. BUT, you want to make sure things are really getting done! You are correct, the LOAN contingency is the best to focus on, the appraisal is a step towards that end, so give a little to get the loan moving forward. The other deadlines are your way, through your Agent, to keep it going. Make sure your Agent is keeping you informed as to time lines and positive progress so you can breath a little easier through this process of closing the deal. Best wishes on your deal.
Paul G. Marchi
NuVision Realty
CA Licensed Broker #01804886
http://www.NuVisionRealty.us
PM Realty Advisors
Certified General Appraiser #AG009572
http://www.marchi.us
Fax: 714-844-4997 Tel: 714-429-0023
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