Is a contract dead if the closing date is passed?

Asked by Harold, Naples, FL Sun May 20, 2012

We should have closed but the date has passed with no talk of each side agreeing to an extension. Is the contract now void? The Realitor we have selling for us says the other side will sue if I don't agree to sell past the closing date, can the buyer do this using the Truth in Lending act TILA.?

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Vince Iorio, Agent, Naples, FL
Wed Sep 7, 2016
Many reatlors draw up the contract and have the loan contingency dated passed the closing date. This date supersedes the closing date. If your buyer has the loan approval you can go ahead and schedule the closing. If your buyer does not have the approval you have to wait until the contingency date. Most sellers work with the buyer when it comes to things like this because both parties want to get the deal done. Do you want to put it back onto the market? My two cents, wait for the contingency date and move forward from there. You don't want to lose your buyer unless you are certain you can get more money or you have back up offers.
2 votes
Marc Comisar, Agent, Bonita Springs, FL
Sun May 20, 2012
If you are the seller......and they did not get it done in time then (depending on the contract of course) yes you could cancel. Don't count on any claim to the escrow though.
2 votes
Alma Kee, Agent, Tampa, FL
Sun May 20, 2012
Just realized you are the "SELLER". In that case then yes, you may be able to cancel the contract if the Buyers were foolish to select the wrong lender and didn't get it closed on time.

Contact an attorney asap.

You may also be able to "gouge" the buyer and make them pay a higher price for you to sign an extension. You could even consider charging a per diem for each day the closing is delayed.
2 votes
I like you Alma! Obviously you like to sell homes and make money!. If I had an agreement I would make damn sure I covered my ass!
Flag Fri Sep 15, 2017
Your a snake!
Flag Wed Jul 19, 2017
You are a shady person Alma. Treat others as you would want to be treated.
Flag Sun Jun 25, 2017
To say that the buyers were "foolish" in selecting the wrong leader is a little harsh don't you think??? Nobody knows exactly what they walk into until they walk into it. My contract was delayed by the sellers but I understood why, now it is delayed by underwriting, which is also understandable. But to offer some one to "gouge" is ridiculous and I am speechless that you would offer that advice. I hope that you are not one of the ones who ends up getting "gouged" at some point that was clearly at no fault of yours!
Flag Tue May 16, 2017
My contract was a basic NC purchase agreement. I want to cancel the contract due to a past closing date. They are sending me an extension to sign but I would prefer to void the contract. any thoughts?
Flag Fri Aug 28, 2015
Michellesoto6, Home Buyer, Naples, FL
Sun Aug 28, 2016
We are the buyer. We have been ready and able to purchase. We are dealing with a foreclosed home. Our contract expired due to the seller due to the seller not being able to pay for the closing cost. Now the seller does not want to sell to us
1 vote
Don Tepper, Agent, Burke, VA
Sun May 20, 2012
First off, I don't know the answer. However . . .

Your Realtor has no idea whether the other side will sue. They might; they might not. That's their decision, which perhaps they've shared with their own agent. However, even if they'd said something, they might change their minds. So it's a real red flag for someone without direct knowledge to be making a blanket statement about someone else's plans.

Second, it might be argued that your Realtor is practicing law . . . which is a no-no.

The only way to determine whether the contract really is dead--that's an issue of contract law--is to check with a lawyer. And there's no way--no way--to determine whether the buyers will sue.

So: Check with a lawyer before doing anything else.

Hope that helps.
1 vote
Temple Riddle, Home Buyer, Packwood, WA
Sat Jun 17, 2017
Have contract, mortgage, and just before closing seller put into bankruptcy, is that legal? Now past closing date
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Apr 29, 2017
First thing is you need an extension any time a date is close or passes. It will depend how the contracts are written. You may need to have a lawyer review your contracts to know where you are at. These days a short sale should take 30-60 days. 2 years is unheard of and definately an issue.
0 votes
Dai_dc2016, Home Buyer, Germantown, MD
Sat Apr 29, 2017
I had a contract on short sale property 2 years ago. I used a dual agent. Due to some reasons, the dual agent did not want to sell the property to me. after the short sale contract addendum expired, the dual agent neither notice us to resigned/renew the short sale addendum nor wanted us to sign the release agreement.I thought the short sale contract was still ratified and I had been waiting for closing the property until I saw a posting in the internet about property was sold out.
(1) The property was not off market and then was put into market again
(2) The sold-out price is $185,000. However, my offer price is $210,000. I am thinking the dual agent cheated the bank
(3) the dual agent wanted me to sign release agreement one month after the property was sold out and din not tell me the property was sold out
(3) the dual agent concealed the fact that the property was sold out for a year until his broker company told me.

I have not signed the release agreement yet. I have some questions:
What is my next steps? (1) Can I sue the agent (2) Sign the release agreement and get the deposit back .
Please advise
0 votes
Michellesoto6, Home Buyer, Naples, FL
Sun Aug 28, 2016
We are the buyer. We have been ready and able to purchase. We are dealing with a foreclosed home. Our contract expired due to the seller due to the seller not being able to pay for the closing cost. Now the seller does not want to sell to us. Can they do this.
0 votes
Kathy Bogan…, , Naples, FL
Fri Jul 20, 2012
No, if an extension has been signed by both parties have signed the contract. You are best to consult a attorney as I don't know the full details of your contract and if there are any contingencies. You can't be forced to sell if the contract has not performed in terms you originally signed. No the seller can't be forced to sell beyound the closing date using the TILA.
0 votes
Home_buyer, Home Buyer, Edison, NJ
Wed Jul 18, 2012
I come across with same situation. My mortgage contingency date was July 1. Due to lender and coop issue my final mortgage commitment still not issued. We had a closing date scheduled on 26th of this month. None of us is working on extending the closing date. If we pass the 26th July and no further closing date get set then....

Does this mean contract expires and null void?

0 votes
Kathy Bogan…, , Naples, FL
Tue May 22, 2012
I don't know the terms of your contract, but if the closing date has passed without an extension Amendment you can possible get out ot the contract. However, ask the attorney handling your side of the closing and tell your agent you want to talk with his/her broker. If you do not have a buyer in the wings to replace your current buyer, you may want to talk to your buyer's lender and see if you can get a 'feel' for time to closing. Remember government backed financing does not hold tight to closing dates...closing occurs whenever the work is completed.... KathyBC 800-448-3411 ext 601
0 votes
Ken Lowe, Agent, Naples, FL
Sun May 20, 2012
The situation depends on the terms of the contract and any addendums thereto. I would contact a Real Estate Attourney to verify your individual situation. The broker of the company holding your listing agreement is also an excellent resource to discuss your situation.

Please feel freee to contact me if you need referral to qualified Real Estate Attorneys.
0 votes
Alma Kee, Agent, Tampa, FL
Sun May 20, 2012
Not sure what the buyer's defense is quoting the TILA... The contract should clearly outline the terms of your agreement.

As mentioned earlier, you may not be able to "claim" the buyer's deposit--unless you go to court and a judge gives a court order--if the escrow deposit is held at a title company. You may be able to go to small claim court but if the judge thinks you've wronged the buyer then you may end up getting penalized.

Contact an attorney.
0 votes
Sun May 20, 2012
0 votes
Rich Homer, Agent, NAPLES, FL
Sun May 20, 2012
Not necessarily if there are two willing parties to complete the deal. Best to discuss with the other party and determine the problem.
0 votes
Jay Newhouse, Agent, Marco Island, FL
Sun May 20, 2012
Contact a good real estate attorney for advise . From my experience on a personal basis CONTRACT FOR DEED BOTH PARTIES HAVE TO FULFILL THEIR OBLIGATIONS ON A
VALID CONTRACT =IF THET DID NOT DEFAULT AND HAVE PAID YOU THEN UNLESS YOU WANT TO END UP IN COURT AND WASTE TIME AND MONEY just a suggestion . , not legal counsel. I had a C F D on a trust and as the trustee the sellers did not even want to talk to me BUT it did close. IF its in writing its probably legal and binding. This is a reason why I personally have all parties initial every page of a contract. Many of MY closings have passed the closing date and SOMETIMES you need an extension in writing but again personally as a licensed real estate BROKER I avoid litigation. I was involved in a minor rental dispute that went to court, avoid it its not worth it. good luck JAY
0 votes
Correction, the trust and trustee were the sellers ;
The buyers (by the way they were attorneys) realized they had to close or lose all the moneies they paid! Most people that enter into a contract to purchase (or contract for deed) have done their homework and close thus the trust received a nice balloon payment and the buyers own a valuble property free and clear.
Flag Mon May 21, 2012
Daniel Barto, Agent, Naples, FL
Sun May 20, 2012
This is not legal advice. However I can say that a contract in binding. Not closing depends on fault- buyer seller or 3rd party. Depending on fault, the other side of that contract has every legal right to pursue damages. So, just because you didn't close does Not make the contract void. I would listen to your Realtor on this one, talk with their broker and try to get this worked out through mediation. Again, I can not give you legal advice just as other Realtors here can not. I'm just sharing my experiences with you. Best of luck to you and your Realtor.
0 votes
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