Extension of Time Addendum

Asked by Gotoma8, Emeryville, CA Mon Aug 6, 2012

Hi, I am selling my loft and I signed an Extension of Time Addendum to give the buyer until the 3rd of August to release both the Loan and Appraisal contingencies. As of today, the 6th of August, the Buyer signed and released the Appraisal contingency, but not the loan, citing that the Lender has yet to certified the condo certification.

Does this mean that the Extension of Time, which expired on the 3rd of August is breached and I as the seller, can call off the purchase agreement?

Thank you for your help!

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Answers

7
Cindy Davis, Agent, San Diego, CA
Tue Aug 7, 2012
Actually yes....your first step would be to issue a notice to perform. If the buyer does not respond to that, then you have the option to cancel.

That said, I would like to add the lenders holding up sales is very common. Have you or your agent spoken with the lender to determine what is really going on? If it's something that is small and fixable, you would still sell your home faster (most likely) by waiting it out with this buyer than starting all over...where the same thing could happen.

Since the late close is not the fault of the buyer, I encourage you to investigate the loan situation just a bit before making the final decision.

All the best.
0 votes
Gotoma8, Both Buyer And Seller, Emeryville, CA
Tue Aug 7, 2012
Thank you all! It looks like the next step is to issue a NTP.
0 votes
Laura Coffey, Agent, Santa Clarita, CA
Tue Aug 7, 2012
I agree you must talk to your agent but what some agents don't realize if you issue a "Notice to Perform" ( all documentation transpired being done on C. A. R. forms) you are agreeing to give back their deposit for the right to cancel.
If you want to keep their deposit for not performing you issue them a " Demand to close escrow" the day you're suppose to close escrow per the contract. If they don't you can cancel and have a better chance of keeping their deposit.
Web Reference:  http://www.LauraCoffey.com
0 votes
Bill & Elijah…, Agent, Oakland, CA
Tue Aug 7, 2012
Please check with your agent before doing anything. If you are working off a standard c a r contract, then you have the right to issue a notice to perform. typically this will give the buyer another 48 hours to do what he is supposed to do. if he doesnt then you have the right to cancel the contract. I'm sure you know this means starting all over again with another buyer. That's about the only remedy you have. Don't forget to check with your agent. best wishes
0 votes
The Medford…, Agent, Fremont, CA
Tue Aug 7, 2012
If all the written time frames have expired and the contingencies have not been removed in writing, then you have the right to issue a Notice To Perform (NTP) as per the contract. Check with your Realtor – even though an NTP is normally 72 hours, you may be able to issue an NTP for 24 hours.

If the buyer fails to perform by the end of the NTP time period, then you can cancel the contract. However, since contingencies have not been completely removed, you will more than likely NOT have any claim on the deposit.
.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Tue Aug 7, 2012
It appears that you can; but you should consult an attorney to make sure.
0 votes
Pacita Dimac…, Agent, Oakland, CA
Mon Aug 6, 2012
Since your buyer did not meet his obligation the next you have to issue is Notice to Perform within so may days (depending on what your contract states). And if the buyer still doesn't, then you issue Cancellation of Escrow.

Who's your realtor? Shouldn't your realtor advise you on the procedure?
0 votes
Pacita, could you give me a call tomorrow? I would really appreciate the advice.
Or I can call you since I shouldn't post my number, correct?
Flag Mon Aug 6, 2012
Again, thank you for your help....I just sometimes feel that the agent has incentives to see that the deal goes through, especially when it's gone this far, so, I don't want to second guess her...but want some independent confirmation.
Thank you for your help so far!

Tuan
Flag Mon Aug 6, 2012
Well, the buyers wants certain things in the property, like washer/dryer and closets. Since this is a loft, the closets are not fixtures. Anyways, my agent did but since I have to place to move to, the agent thought that if we issue the notice, the buyer won't be flexible in giving us additional days after the date on the contract, which is the 31st of August, that I must be out of the loft.

Tonight, my agent sent me the Release of the Appraisal from the buyer, but not the loan. As the buying agent states that the buyer's lender is awaiting the Condo Certification. It's been more than three days after the the August 3rd expiration of the extension of time addendum. My wife and I are tired of the process and want to remain. Do I still need to issue a Notice to Perform?
Flag Mon Aug 6, 2012
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