Seller is requesting Escrow Extension, what are my options?

**myone** · 05-26-2009, 01:33 PM

Hi, when I purchase my home in CA, the seller agent included "close of escrow" date to be contingent-until the seller found a house in the offer letter. But they promised to close escrow in 45 days, which was supposed to be May 25, 2009.

Now, they are giving me an extension form to extend the close of escrow 1 month later, which is June 26. My questions are:

1) Do I have to agree to the extension since they have "contingency" on the original offer letter?
2) Let's say I agreed to extend the close of escrow date to June 26, 2009, can they still come back with another extension?
3) What rights do I have as a buyer in a situation like this?
4) Since the seller is having problem moving out and is not able to surrender the house, do I have the rights to cancel the deal? If I cancel the deal, do I have to be responsible for all the fees incurred from this transaction?

I am frustrated that the whole process is taking this long since my loan is already approved, and everything is ready to go. As much as possible, I do not want to do extensions. My real estate agent is not very helpful to help me with my rights. So if anyone can help me with my questions, I greatly appreciate it. Thanks in advanced.

**kevin@BootStrapLearning** · 05-26-2009, 02:25 PM

Originally Posted by myone

My real estate agent is not very helpful to help me with my rights. So if anyone can help me with my questions, I greatly appreciate it. Thanks in advanced.

Nobody can tell you without knowing the exact terms of your contract. If you are not getting the answers you need from your agent, contact the broker who carries their license. If you can't get the answer from the broker, contact a real estate attorney.

**Greg** · 05-27-2009, 06:03 AM

Originally Posted by [LEFT

myone[/LEFT];58498]Hi, when I purchase my home in CA, the seller agent included "close of escrow" date to be contingent-until the seller found a house in the offer letter. But they promised to close escrow in 45 days, which was supposed to be May 25, 2009.

Now, they are giving me an extension form to extend the close of escrow 1 month later, which is June 26. My questions are:

1) Do I have to agree to the extension since they have "contingency" on the original offer letter?
2) Let's say I agreed to extend the close of escrow date to June 26, 2009, can they still come back with another extension?
3) What rights do I have as a buyer in a situation like this?
4) Since the seller is having problem moving out and is not able to surrender the house, do I have the rights to cancel the deal? If I cancel the deal, do I have to be responsible for all the fees incurred from this transaction?

I am frustrated that the whole process is taking this long since my loan is already approved, and everything is ready to go. As much as possible, I do not want to do extensions. My real estate agent is not very helpful to help me with my rights. So if anyone can help me with my questions, I greatly appreciate it. Thanks in advanced.

If the extension is worded right it will cancel out the contingency-until the seller found a house clause. You never should have signed such a contingency in the first place. It let the seller close whenever they want and leaves you hanging with a loan that can expire.

Have someone with some legal expertise look at this contingency and if necessary change it to favor your situation.

**REITrainingWhse** · 05-27-2009, 08:01 AM

Myone,

Depends on how the contract is written... If the contingency is written that the contract is null and void if the contingency is not satisfied, then without the seller's satisfying the contingency the contract becomes null and void, and you can sue for any non-performance (again, whatever is written in the contract.)

If the contingency states that the seller has until a specified date to either cancel the contract based on the contingency, otherwise the contingency falls off (auto-magically is satisfied, like most inspection contingencies I have seen out there,) then by not agreeing to extend causes the contract to read as if there wasn't such a contingency.

So, as someone else stated, you need to understand what you had signed and what actions are available for you to take.

Sorry we can't be much help, but talk with the RE agent that wrote the offer and ask them... Just be prepared as they are on the seller's side. Otherwise you can get an attorney involved... But it is ALWAYS MORE EXPENSIVE to try to get yourself out of things, than taking the time to read and understand contract that many just blindly sign.

Later!

**Rich Johnson** · 05-31-2009, 11:23 AM

If it's not in writing, it does not exist.

Without seeing your contract, it sounds to me as though you signed something that obligates the Seller to do nothing if he should so elect. Unless modified, the extension would do nothing but tie you into the purchase while the Seller could simply say that "I'm sorry I can't find a suitable replacement home & therefore am not selling".

Have your agent review this with you init's entirety.

**makemine** · 10-09-2009, 12:10 PM

Could you please tell us where your company is located (what state or
city, )and just what type of business you run?

That kind of information *may* help researchers find what you need

**Nick Brian** · 10-09-2009, 12:51 PM

Hi get a copy of the contract. Without knowing the content of the contract it is not just possible to give you answer. If you can provide content then we can give a better solution in no time. Also discuss about the options you have with your agent.
Without knowing what's there you are just wasting time. So find a real estate attorney if you think you have to. Take time before signing for an extension. It is better if it expires. Otherwise a lot of cost coming for you. Next time avoid this. Thanks for listening. Nick Brian.