Thread: Buyer didn't close

You got several offers, so the market is good.
I'll call for closing at the contract time. If no show up, I'll ask for the deposit as buyer's default. And I'll put my property on the market again...

However, you may be a good person and say yes to everything...

Without seeing the contract, its really quite hard to give an opinion.

Standard disclaimer: I'm not attorney, consult a competent attorney, blah blah



Assuming nothing unusual term-wise...



Is there a "time is of the essence" provision?

If there isn't - theres really very little you can do. Yes, you can throw a temper tantrum legally, demand a release from the contract, their deposit, etc - but the bottom line, not much would come of it IMO because all they have to do is go to the courts & demonstrate that they were diligent in their efforts and operating in good faith on the purchase. (A VERY low threshold for establishing diligence is typical in most locales.)

And realistically, all they have to do to buy a week is get a sleazy lawyer to "drag his feet" while giving the appearance of being diligent.
i.e. Day 1: Your attorney makes your demands, writes it up and sends it certified return receipt w/ signature required to the other guy's attorney.
Day 2 & Day 3: The other attorney's office receives the letter - but he's "in trial for 2 days".
Day 4: The other attorney contact's your attorney. I'll get in touch with my client and express your demands.
Day 5: I got in touch with my client. We'll be responding back to you. He writes up his clients response and sends it certified return receipt with signature required to your attorney.
Day 6: Your attorney receives it. The response is "no we wont do it."
Day 7: You close on the sale.


On the other hand, if there is a "time is of the essence" provision" - that opens up a lot of windows - anything from you potentially holding them hostage on the sale, keeping their deposit, to renegotiating the purchase price if you so desired.

Stinks the buyer requested an extension on closing the date. I would have expected they knew there was a problem prior to that, which makes me skeptical of their motives. Honesty policy usually works best.

You may want to respond with an offer of 10 days and that if the closing does not occur, the buyers deposit is therefore liquid damages and immediate release to the seller is not subject to litigation.

You may also request additional deposit.

Don't just give the extension without something in return. even in a tough market, you must be firm without being demanding.

Thanks to everyone for their replies.

The deposit money which is kept in my agent's brokerage in trust, under what conditions do I get access to it? Will I get the full deposit or part of it? Will there be any litigation involved in accessing that money?

Thanks.