What happens if a seller refuses to sign an extension?

Most buyers don’t like to ask for extensions any more than sellers like granting them. But, standing on principle could result in a dead deal. If you won’t grant an extension because a seller refused to grant you one in a previous transaction, you could find your home is back on the market. Buyers have a choice.

Can a 10 day extension be used on a closing date?

Not So Fast My Friend! As many of you have seen over the past year or so, buyers are increasingly using the “up to 10 day extension” provided for in Paragraph 5 (a) of the FAR/BAR contract to extend the closing date. The issue is that the buyer mistakenly believes that the extension is automatic if their lender is not ready to close.

Can a seller say no to an extension?

Fortunately most of the time the seller is reasonable and will extend the date in the late stages of approval like this original poster is in right now where the bank has approved the loan and the USDA has to run it through their system.

What happens if buyer doesn’t meet closing date?

With a time of the essence clause, both you and the buyer decide on a hard closing date and if the buyer doesn’t meet this deadline, the seller can walk away from the sale.

When to use an extension on a far / bar contract?

The answer is that the FAR/BAR committee was very specific in the language they used when revising the Contract. Specifically, the extension is only available if the lender’s funds are not available on the closing date due to the CFPB delivery requirements.

Why does the seller want to extend the closing date?

Sellers may not want to extend the closing date if they feel they didn’t sell for a high enough price or they simply don’t like the buyers. In other cases, the seller generally asks the buyer to sign an extension of time addendum and learns why they need an extension.

When do buyers not like to ask for an extension?

When buyers are doing everything they can to make a deadline in the contract, or the closing date, but are delayed for conditions beyond their control, they are doing what they agreed to do. Most buyers don’t like to ask for extensions any more than sellers like granting them. But, standing on principle could result in a dead deal.

What happens if seller won’t grant extension?

If you won’t grant an extension because a seller refused to grant you one in a previous transaction, you could find your home is back on the market. Buyers have a choice. They don’t have to buy your house, no matter how much they like it.

What happens if seller does not sign extension of time agreement?

In such a situation, the court could decide a seller might not have a legal right to terminate a contract simply because the time period has expired. There is little black and white in court. Still, it won’t necessarily cause a seller to sign an extension of time agreement if the seller disagrees.