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. Both sides signed the purchase agreement back in March how long should the closing take?

I'm selling a commercial building. Both sides signed the purchase agreement on March 5th. The original closing was supposed to be on May 31, then June 15th. Now they want to move it to July 31. They are saying the bank is delaying. Is this normal?
  • June 12 2012 - Indianapolis
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Answers (4)

Depends on the bank. What state is the house in, and what bank is the loan with? Unfortunately, a few of the larger national banks are running well behind on every loan right now.
  • June 15 2012
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Yes, It is usually "approved" a term that is hard to really understand as it is ONLY approved for as much information they had to date,income,expectations of value if appraisal is a closing condtion,title work.etc..There are many parts to the underwriters final approval that is really due dilligence for the property ,title ,approvals...leases..all kinds of variables.Find out if WHAT and WHO is causing the delay.It might be something they need to get on YOUR property...not of their own doing.

Once you find out where it is coming off track to cause a closing delay then you can be succesful in fixing the issue to everyone;s satisfaction.
That may also be ( no sure) as to why they would not sign the addendum.
IF the delay is due to something that needs to be completed for the bank or in regard to your property and NOT of their delay or they have failed to do,you can see why they do not feel justifed in signing as it is out of their control.

I really think you need to communicate better btwn  parties,you have a Realtor so talk to them .Maybe if you find out why,you can better understand the delay and accept the extension or not...ask your professional they will know better.

It is hard to put a new term to a buyer,especially a non refundable clause.
 IF THEY truly caused the issue then when you investigate you will find out.FINDING a buyer in this market,especially Commerical is tight...you want to try an keep them if you can.

I suspect you did not close today...It depends..if their lender cannot complete the approval due to issues they are waiting on for your property ...you may have to extend it.

Talk to your Realtor,they will know what to do ...It is not uncommon in Commercial..much more diilegence than a regular sale..Best wishes and Good luck Suzie.

  • June 15 2012
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Hi and thank you for the quick response. I asked for documentation of the pre-approved loan documents. The realtor tried to tell me that they had been pre-approved the term sheet say "if it is approved" I've asked that they add another 10,000 to the already 5000 in earnest money they provided to my realtor. the contingency would be that if it isn't closed by July 31 they would forfeit the earnest money. They have refused to sign this addendum and i haven't agreed to closing on July 31st. Please tell me if there are rules that indicate they can't string me along like this...they are asking their financial institute for a loan of close to a Million dollars. 
  • June 14 2012
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Commercial purchases are totally different that a residential sale. Yes it can be very normal. Financing for commercial purchases are done at different then underwriting for a residential property. If you have an agent or a lawyer have them outline the need for the delay.WHAT bad WHY the delay and what are the remedies. I know some banks that lend commercially meet once a month and go over the loans. Depending on the type of commercial property, and what is factored into the loan ( leases, income, environmental) or any due diligenceit that is required,, that could be blamed on the lender as they need to satisfy a closing condition. Appraisals are a whole other issue with Commercial properties. Depending in how your contract is constructed there should be certain contingencies that have been completed and are satisfied. Check where you are at, and what still needs to be done...and what steps would need to be done to get the loose ends tied up. Once you know exactly what needs to be done, it takes the mystery out of why there is a delay. You might even be able to help get it to close quicker if there is something you can help to facilitate. Best wishes
  • June 12 2012
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