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All contingencies removed but the loan approval, once approved can they delay signing off

The buyer has signed off all contingencies but the loan approval.  Once the loan is approved, can the buyers put off signing off, or can they sign days after, or do they have to decide that day to sign or walk.  
  • October 18 2013 - San Diego
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Answers (3)

Your ratified contract will help to answer your questions. Assuming you signed a CAR contract, take a look at paragraph 1D. You should find what was contractually agreed upon in terms of when the "signoff" will take place. You should find either a close of escrow date listed or you  a defined number of days after acceptance for the close. If there is a number listed instead of a date, day 1 is the date following your fully executed contract.

In terms of the loan contingency, determine the date which the loan contingency must be removed by. You can find this information by looking at paragraph 3H(3). The contract standard is 17 days to remove the loan contingency. However, you will see that the number of days can be negotiated. The buyer has until that date to either remove the loan contingency, request of you an extension of time, or request a cancellation of contract based on them not being able to get loan approval.

In terms of the timing of the signing, the only thing you will know for absolute certainty is that the buyer needs to sign by the contractually agreed upon date found in paragraph 1.

I provided the information above not having access to your contract. Therefore, I must caution you to also be sure to double check any addendums that may have been added to the contract. It is not uncommon, for the contingency or close of escrow timing to be altered through the addendum process.

Your Realtor can connect with the buyer's Realtor to discuss how the loan process is proceeding. I would suggest that you ask your Realtor to check in on things and to provide you with an update to help you feel more comfortable with the buyer you are in contract with at this time.

Hope this helps.
  • October 18 2013
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Until the buyer removes his loan contingency, it's still in effect. It's your agent's job to stay on top of the contract dates and advise you.  I'm wondering why isn't this happening...  Whether you have an agent or not, or whether you thought using the listing agent was a good idea, you need to read the entire contract. Once you do, you'll know what your options are.

We can't tell you what to do here, since we don't know the specifics of your contract. What you can do though, is to contact the lender to see where the buyer is in the loan process.

Good luck to you, I hope it works out.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
  • October 18 2013
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Good Morning,
These are questions for your broker/agent. It all depends on how your contract is written. If they are passed the times specified in the contract, then they should have to act immediately, or you should give them a notice to perform.

Thanks!
  • October 18 2013
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