Profile picture for user6193214

Closing date come and gone

I signed a purchase agreement for a home that was unfinished on 7/21/2012.  The contract states that the closing date is on or about 9/21/2012 and seller agreed to have it ready in turn key condition.  The home was built in 2010 and only needed a heat pump, septic system, and water hooked up to be finished.  The seller had 60 days to finish the home.  The seller did not even attempt to finish the home until my loan came out of USDA and was ready to sign on 9/10/2012.  I was not required to pay any earnest money.  One week after closing date, I asked my realtor if I could walk away if the home wasn't finished in a reasonable time frame.  I was told that I would have to pay her commission if I did that (that is nowhere in the agreement).  There is no "time is of the essence" clause in the agreement.  Today makes 30 days past due and they still need to connect power, spray for termites, sow grass seed, get the COD, final inspection, walk through, and have the appraiser come back out.  My question is this:  can I just walk away and tell them where to stick it?
  • October 21 2012 - US
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Answers (13)

Profile picture for Ofe Polack
Just wondering how did you make out with the purchase of your property?
  • November 20 2012
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Your agent should have kept track of the progress and kept you informed. It is highly unusual that you did not have to deposit any earnest money with your agent. Did you have a signed contract with your agent, that she was to serve as your exclusive Buyer's Agent?  If not, or if that (her fee being paid by you in the event of a failure of the seller to fulfill the terms of Contract) is not stipulated in the agreement you have with her, and the closing date is now 30 days past, my feeling is that you can be out of there, AND that she would be lucky if you did not file an official complaint against her with your state's Real Estate oversight/regulatory board, which is easy to find via Google, etc.. This is a very serious issue. I hope this helps!
  • November 19 2012
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Hi!

Your agent should have kept track of the progress and kept you informed.

It is highly unusual that you did not have to deposit any earnest money with your agent.

Did you have a signed contract with your agent, that she was to serve as your exclusive Buyer's Agent?  If not, or if that (her fee being paid by you in the event of a failure of the seller to fulfill the terms of Contract) is not stipulated in the agreement you have with her, and the closing date is now 30 days past, my feeling is that you can be out of there, AND that she would be lucky if you did not file an official complaint against her with your state's Real Estate oversight/regulatory board, which is easy to find ia Google, etc..  This is a very serious issue.

I hope this helps!  Feel free to contact me any time!

Sincerely,

Peter Del Vecchio
Buyer's Realtor ®
RE/MAX Affinity Group
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  • October 23 2012
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If I am reading all of this correctly, you are buying a home from a builder who is also the real estate agent. And you have no agent or virtually anyone on your side of the transaction? 

You are about to exceed thirty days from the original closing date? 

I would contact a lawyer today, and take all of your documents with you. I would also be concerned about what kind of house someone with such a lack of funding might put together. 
  • October 22 2012
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Profile picture for TopNJAgent
Talk to your attorney about "time is of the essence" to establish an official clock and undertanding of what rights you have it they do not deliver in time.

Good luck and best!
  • October 22 2012
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Having sold homes in VA for 14 years I can tell you that the contract does not just up and die once the closing date has past, as some below incorrectly assume. Without the Time Is Of The Essence clause it can live on for a month or more. It comes down to if you still want the house. Your next visit should be to a lawyer for advice and for them to issue letters that will start a clock running to allow you out of the contract, if that is what you want. It can also force Mr Builder to finish or lose the contract. It sounds like you have an under funded builder scrapping nickles together to build homes. Go see a lawyer.
  • October 22 2012
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Thanks for posting your question on Zillow.com!

Sorry for your issue.  First and foremost every Realtor that answers should open with, "contact an attorney".

O.k., there should have been an extension executed by both parties agreeing if the original one on the contract is not going to be met.  If the closing date comes and goes w/o this, buyers are out of the deal.

Now, anytime I have clients that are in a situation where things get crazy, I try to get them to look at the big picture and imagine all of the joy they will have in this dream home.  You will forget all about this hiccup years down the road, don't blow it because it is getting personal & you want to stick it to them.

You can report the broker/owner to the local Realtor's board but make sure you have things in writing.

Best of luck.
  • October 22 2012
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I am appauled by your experience and your realtors ethics. I would report her to the board of realtors and contact a real estate attorney right away. Its time to persue other options.
Best wishes to you..keep us updated
  • October 22 2012
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Profile picture for user6193214
My realtor is the owner/broker.  This has been a horrible experience for me and my family.  This would potentially be my first home purchase and it has been a nightmare.  I have even requested a list of items that need to be finished and a schedule.  I believe I will contact them tomorrow to see where we stand. 
  • October 21 2012
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Looks like the seller is in breach of contract. It also looks like your agent is  not working in your best interests. You may want to to talk to your agents Broker/Manager about this. Or it may be time to consult an attorney.
  • October 21 2012
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Profile picture for Ofe Polack
I feel really sorry for what you are going through.  I think at this time you should have a word with a real estate attorney who can write a couple of letters.  I know that you must be climbing up the walls, but it also seems that you are very close to the end, if you could hang in there a little longer you may end up with what you want.   One thing that needs to be done is to obtain an extension, if you do not have an extension on the contract and the closing time has passed due to the seller's issues, you may be out of contract. 
  • October 21 2012
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Profile picture for user6193214
I was told that I would have to pay commissions, penalties, etc to the realtor, mortgage company, etc.  Keep in mind that I am in VA.  I believe that was a scare tactic.  I do not believe the realtor has done anything.  I have been the one calling non stop searching for answers.  I get the cold shoulder when I do call and ask questions and for progress updates.  I sent an email to both the mortgage broker and realtor on Thursday of last week.  I said that if the home wasn't turn key ready by Monday 10/22/2012, I was going to pursue other options.  I also requested that I be compensated $125 per day past the original closing date in the form of cash at closing or loan modification.  They called me on Friday and acted like nothing was wrong.  
  • October 21 2012
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Why should you have to pay your realtor a commission? Sounds like the seller breached the terms of the purchase agreement - not you! What did your realtor do (if anything) to try to ensure the transaction closed per the terms of the agreement?

This is one of those times where you would be better served by an attorney to see what your options are. Many attorney's offer a free first consultation ... do that and take copies of all signed documents with you. If you end up terminating the purchace agreement, I would also seriousy consider terminating your relationship with your realtor.

Best of luck!
  • October 21 2012
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