Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 9 months ago

Buyer wants to extend closing date, me not.?

Update:

I am selling my condo. As per agreement, the closing date was May 15. They asked me to extend the closing to May 23, which I did. Now they want to extend again to May 30.

Agreement has the “time is of the essence” clause. They say they have to extend because they can’t get documents from my HOA Management, hence, out of their control.

Can I back out of the deal without consequences? They’re saying they would sue me if I do not agree to extend the closing date.

8 Answers

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  • 9 months ago

    You don't have to, but then you lose the buyer and have to start over.

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  • 9 months ago

    Why aren't YOU handing over the Rules & Regs of the HOA? That's YOUR responsibility, not the buyer to attempt to obtain it from the HOA. The HOA is ONLY going to give it to homeowners, so the request for extension is your fault and if you don't do it AND provide the Rules & Regs and other HOA documents that they as buyers are entitled to have, expect to be sued for specific performance, and you will lose. It will cost you big time.

    Source(s): Certified Paralegal, with 25+ years' experience & I live in an HOA and HOA familiarity.
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  • 9 months ago

    It sounds like the deal is being delayed because their lender requires the HOA documents. It is your responsibility to ensure that you provide that info or you get your HOA to provide it.

    If you refuse to provide that information then they will be unable to obtain financing and they will get their earnest/good faith money returned in full under the financing contingency.

    They would probably have a very valid case for a lawsuit against you. Requesting HOA information is standard practice in real estate transactions. The buyer has probably invested hundreds or thousands of dollars already by paying for inspections, appraisals, legal fees or attorney reviews, etc. They lose all that money if this deal falls through, and if it falls through because you failed to provide information and refused to extend the closing date, then they'd have a pretty convincing case against you small claims court. You'd probably be forced to repay them for all those costs plus legal fees.

    There's no advantage to you to refuse to extend. You'd be starting over with advertising the property and you would just run into the exact same problem with the next buyer if you still can't or won't provide the HOA info.

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  • 9 months ago

    If your contract included the required approval of HOA materials, the buyer can sue you. But if they left that part out, you have no responsibility to the buyer in that extent and can let the contract expire. In fact you have good cause to keep the good faith deposit too.

    The exception would be if the HOA documents were required by their lender. In that case they would be eligible to get their good faith deposit back, but not grounds for a law suit against you.

    EDIT: I answered without reading the other answers. Glen S nailed it, he should be given best answer.

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  • Never
    Lv 7
    9 months ago

    Ask your agent. I don't think you have to agree. Or you can only agree if they put up some extra earnest money. I think you have options. I guess you could call it off too if you want.

    I'm not sure they can blame you for not agreeing to extend it. Its not your fault the HOA is taking their time.

    That would tick me off if they threatened it.

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  • Anonymous
    9 months ago

    You can't back out of the deal upon receiving their request, but you can say NO to another delayed closing.

    When they cannot close by the end of today, you'll be out of contract.

    Not sure what they think they're going to sue you for since THEY are the ones who did not comply with the terms of the contract. Does the contract state anything about certain HOA documents being furnished to them and do you have any responsibility for furnishing them?

    Do you really want to start over with a new buyer at this stage of the game?

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  • 9 months ago

    David

    Their lender requires certain documents from your HOA....Generally things like Insurance valuation for last three years, Liability & Fidelity/Crime Insurance, and Declarations/CC&R. Without these items the lender will not make the loan. These issues are not the fault of the buyers, but the fault of your side.

    If the buyer sues you he would probably win....plus you would be responsible additionally for thousands of dollars of legal and attorney fees of your own and the buyer.

    Get on your HOA to provide the items you need or you will suing the HOA for damages.

    Finally, if you cancel the deal it will cost you at least another 30-45 days of find another buyer and close. You need to give the buyer the time he needs in order to get the deal closed.

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    • Glenn S
      Lv 7
      9 months agoReport

      The HOA is the responsible party, but they are considered on your side of the transaction, not on the buyers side.

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  • 9 months ago

    why don't you get on your HOAs case......

    what does your lawyer say about it?

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