The word â€œrightâ€ is a bit misleading â€“ â€œrightâ€ and â€œcorrect thing to doâ€ are often two different things.
Your â€œrightsâ€ are defined by the contract â€“ they do certain things, you do certain things, both are rewarded. Their reward is a house, your reward is cash. The contract simply specifies what needs to be done and at what specific time to ensure the reward happens at the end for both parties. Anyone can ask for changes in the contract as they go along â€“ as long as both parties agree, then the contract keeps going forward. If either party either (1) fails to keep a part of the contract or (2) changes part of it without the otherâ€™s consent, then the possible outcome is the loss of the reward.
If the buyer asks for an extension, there is usually a good reason. Example: they need more time to get their loans docs into escrow, get the loan funded and close. If you agree and grant an extension, things can proceed and the reward still happens for both parties. If you donâ€™t agree, then you technically have the â€œrightâ€ to cancel the contract and move on. Is that a wise thing to do? The â€œcorrect thing to doâ€? Not normally. Both parties lose.
Q: Is it aggravating that the buyer is not going to close on time?
Q: Is the buyer doing it on purpose?
A: Not usually.
Q: Is there any benefit to â€œpunishingâ€ the buyer for their inability to get closed on time?
A: Not usually.
Q: Can you seek damages if you have been harmed by the failure to close on time?
A: Maybe. You would have to make sure you can demonstrate actually damage. Example: cancellation of a moving contract with the resulting loss of deposit.
Q: Can you keep their deposit and go and get another buyer?
A: Maybe. If contingencies have been removed and you want to play hardball, you can have your Realtor submit a 72 hour â€œNotice To Performâ€. If they fail to close within the 72 hours, you may have a right to cancel the transaction and get their deposit. Is that a good move to make? Personal opinion: only in extreme circumstances where you believe they will not actually close at all under any circumstances. And then you have the hassle of going back on the market and so on.
Q: What can you do to strengthen your hand a bit?
A: If they ask for an extension, you can also ask that they increase their deposit and, in writing, specify that the deposit become non-refundable after a certain point in time. That provides the buyer incentive to ensure that they keep things moving forward.
Hope this helps â€“ let me know if you have any additional questions.