I am starting to notice an alarming new trend happening during real estate transactions. Sales not closing as per the signed and agreed to contractual closing date. This is a violation of the terms of the sale, and grounds for termination of the contract by the seller.
Whether the delay is caused by the buyer, the lender, the association management company, the surveyor or the appraiser, is not the issue. The issue is that the delay is costing you, the seller, money. Real estate taxes, homeowner association fees and interest accrue every day the property is in your name, and these unexpected increasing expenses were not incorporated into the agreed upon sales price and contractual terms.
Do you have recourse? Of course, you can terminate the contract and start over, or you can try to negotiate that the buyer be responsible for the increasing costs when they present you with an Amendment to extend the closing date. Both options are unfavorable with the second adding risk to the negotiation and finalization of the deal.
So, what do I suggest? I’m working with an attorney to provide the appropriate legal verbiage to add to the Special Provisions section of the contract stating from the onset of the contract that the buyer will be responsible for any added expenses to the seller for any and all delays extending the closing beyond the original closing date as specified in the contract not caused by the seller.
For you potential sellers out there, I just wanted to alert you to a potential issue, and provide you with ideas to advert loss of your hard earned money.
Bill Barkley, Owner & Broker for River Valley Real Estate
19202 Huebner Rd, Suite 100
San Antonio, TX. 78258