Seller threatens to cancel purchase contract because of missed closing date

[rdemyan]

What is the name of your state? Washington

Due to lender delays, the closing date will be two to three days after the agreed-upon closing date in the purchase and sale agreement. However, all documents have been signed by both the seller and buyer by the agreed-upon closing date. The delay will be caused by the lender needing to do a final review and then fund. Because of the current financing boom, we've already had two addendums to the purchase agreement to extend the closing date signed.

The seller is angry and is threatening to not sign this third addendum to the contract extending the closing date. Given that we are in escrow, all documents are already signed by both seller and buyer, and closing will occur only a few days late, does Washington law allow for some leeway on actual closing (I understand that California law does so I thought maybe Washington law might as well). Does the seller have a case here? Will I have a case if I need to sue to compell the seller to go through with the transaction? Thank you for your response

 

[HomeGuru]

What is the name of your state? Washington

Due to lender delays, the closing date will be two to three days after the agreed-upon closing date in the purchase and sale agreement. However, all documents have been signed by both the seller and buyer by the agreed-upon closing date. The delay will be caused by the lender needing to do a final review and then fund. Because of the current financing boom, we've already had two addendums to the purchase agreement to extend the closing date signed.

The seller is angry and is threatening to not sign this third addendum to the contract extending the closing date. Given that we are in escrow, all documents are already signed by both seller and buyer, and closing will occur only a few days late, does Washington law allow for some leeway on actual closing (I understand that California law does so I thought maybe Washington law might as well). Does the seller have a case here? Will I have a case if I need to sue to compell the seller to go through with the transaction? Thank you for your response

**A: on real estate transactions, there is no automatic closing extensions unless specified and agreed to in the contract. Any extensions must be agreed to in writing by both parties.

 

[rdemyan]

I checked my purchase and sale agreement and the only clause I found with regards to default reads as follows:

In the event Buyer fails, without legal excuse, to complete the purchase of the Property, then the following provision, as identified in Specific Term No. 7 shall apply:

Then the paragraph mentions Forfeiture of Ernest Money or Seller's Election of Remedies. Specific Term No. 7 has forfeiture of ernest money checked.

What does "without legal excuse" mean? What constitutes a legal excuse? Thank you.

 

[AARRGG]

We are in a similar situation where we are trying to get out of the agreement, but so far have no legal excuse too and stand to lose our earnest money.
What legal excuse means is for example, if your closing date gets passed and you haven't filed an extension, then you are in breach of contract and the seller has the legal excuse to walk away, but with your earnest money. Let say that your agreement was contingent on an inspection, and something came up in it, then you would have a legal excuse to terminate the agreement. If you are past closing and don't have an extension filed, then the seller has every right to take your earnest money and not sign the extension. Your sale is contingent on you being able to arrange financing, and since your lender hasn't completed it by closing, it really is considered your fault and the seller can cancel the agreement.
Unfortunately you would probably not be very successful in suing the seller.
This is all based on information I have received from realtors and attorneys.

Good luck to you.

 

[HomeGuru]

I checked my purchase and sale agreement and the only clause I found with regards to default reads as follows:

In the event Buyer fails, without legal excuse, to complete the purchase of the Property, then the following provision, as identified in Specific Term No. 7 shall apply:

Then the paragraph mentions Forfeiture of Ernest Money or Seller's Election of Remedies. Specific Term No. 7 has forfeiture of ernest money checked.

What does "without legal excuse" mean? What constitutes a legal excuse? Thank you.

*A: how should I know? You were the one that agreed to and signed the contract with that language.