Seller delays closing

[hottamale]

Does anyone know what happens if a seller can no longer complete a transaction by the closing date? Just heard word that our resell contract that is supposed to close on 12/22 will not be complete due to a deed issue. Does the seller lose anything from not going through with a sale? We have had all of our paperwork and the funds send over since November 15, so this is a surprise to me.

 

[AprilsZoo]

A deed problem isn’t likely anything the seller has any control over.

More than likely there’s some discrepancy in how the deed was recorded in the previous/original sale. There’s always a chance it still will get sorted in time, but the title company is going to ask for an extension so they can do their job and research then work to resolve whatever the problem is.

Dealing with whatever issues arise surrounding proper deeding of the sale is *exactly* what you are paying the title company for.

I know you’ve been waiting for nearly a month and it’s got to be frustrating, but it’s probably equally as aggravating for the seller. I’m sure they would love to get their money sooner than later, and have probably been hoping that the closing would go faster. I would bet they could have used the money for Christmas/Hanukkah/holiday-of-choice.

I’d keep in touch with the closing agent at the title company. Try to be patient with things that are not in anyone’s control. It’s not like they are choosing to delay for some selfish reason.

 

[Matty B13]

I would ask the Title Company what the hangup is. If it is a divorce or a probate issue, you should probably move on and get your money back, because this could take a long time to settle.

If it isn't one of those issue, you might get it settled sooner. But insist that the Title Company tells you what the problem is.

 

[Sandisw]

Honestly, I would ask to be let out of the contract once that date passes, unless they assure it will close shortly after that date and it’s the perfect contract.

 

[CraigInPA]

You'll want to set a new date. If they won't agree to that date, walk away from the deal.

 

[sndral]

Does anyone know what happens if a seller can no longer complete a transaction by the closing date? Just heard word that our resell contract that is supposed to close on 12/22 will not be complete due to a deed issue. Does the seller lose anything from not going through with a sale? We have had all of our paperwork and the funds send over since November 15, so this is a surprise to me.

If the seller backs out of the deal, then they technically owe the commission - but I doubt that it’s worth the hassle for the brokerage to pursue them. If the seller doesn’t back out & the sale fails to close for some other reason such as whatever the ‘deed issue’ is, then, depending on their contract w/ the brokerage, they’d likely owe nothing.
I wouldn’t agree to extend the closing date (which is likely what is being asked.) W/out knowing exactly what the issue clouding title is you don’t know how long this will take. If the issue is divorce or probate or bankruptcy it could drag on for a long time.
If the deal doesn’t close on the date set you get your money back & just find another contract w/ clear title to buy.

 

[Matty B13]

This is why you don't send all the funds for the closing, until after the seller has sent their paperwork back.

 

[hottamale]

This is why you don't send all the funds for the closing, until after the seller has sent their paperwork back.

I wasn't aware of that, this is my first resell and the paperwork said to be returned by 11/15 so I wrongly assumed that included the funds as well.

 

[hottamale]

A deed problem isn’t likely anything the seller has any control over.

More than likely there’s some discrepancy in how the deed was recorded in the previous/original sale. There’s always a chance it still will get sorted in time, but the title company is going to ask for an extension so they can do their job and research then work to resolve whatever the problem is.

Dealing with whatever issues arise surrounding proper deeding of the sale is *exactly* what you are paying the title company for.

I know you’ve been waiting for nearly a month and it’s got to be frustrating, but it’s probably equally as aggravating for the seller. I’m sure they would love to get their money sooner than later, and have probably been hoping that the closing would go faster. I would bet they could have used the money for Christmas/Hanukkah/holiday-of-choice.

I’d keep in touch with the closing agent at the title company. Try to be patient with things that are not in anyone’s control. It’s not like they are choosing to delay for some selfish reason.

Thank you so much for your input, I greatly appreciate it!

 

[AstroBlasters]

I think an issue you are probably wrestling with is that you purchased a smaller VGC contract…. and those can be hard to find if you back out of this deal… I’d wait it out….

 

[hottamale]

If the seller backs out of the deal, then they technically owe the commission - but I doubt that it’s worth the hassle for the brokerage to pursue them. If the seller doesn’t back out & the sale fails to close for some other reason such as whatever the ‘deed issue’ is, then, depending on their contract w/ the brokerage, they’d likely owe nothing.
I wouldn’t agree to extend the closing date (which is likely what is being asked.) W/out knowing exactly what the issue clouding title is you don’t know how long this will take. If the issue is divorce or probate or bankruptcy it could drag on for a long time.
If the deal doesn’t close on the date set you get your money back & just find another contract w/ clear title to buy.

If the seller backs out of the deal, then they technically owe the commission - but I doubt that it’s worth the hassle for the brokerage to pursue them. If the seller doesn’t back out & the sale fails to close for some other reason such as whatever the ‘deed issue’ is, then, depending on their contract w/ the brokerage, they’d likely owe nothing.
I wouldn’t agree to extend the closing date (which is likely what is being asked.) W/out knowing exactly what the issue clouding title is you don’t know how long this will take. If the issue is divorce or probate or bankruptcy it could drag on for a long time.
If the deal doesn’t close on the date set you get your money back & just find another contract w/ clear title to buy.

Great, thank you for your input!

 

[hottamale]

You'll want to set a new date. If they won't agree to that date, walk away from the deal.

Thank you!

 

[hottamale]

Honestly, I would ask to be let out of the contract once that date passes, unless they assure it will close shortly after that date and it’s the perfect contract.

Thank you!!

 

[AprilsZoo]

I wasn't aware of that, this is my first resell and the paperwork said to be returned by 11/15 so I wrongly assumed that included the funds as well.

Probably depends on the contract. It’s not really a big deal. The funds are secure in escrow. It’s not like the seller has access and could abscond with the money while you’re sitting twiddling your thumbs.

 

[hottamale]

Probably depends on the contract. It’s not really a big deal. The funds are secure in escrow. It’s not like the seller has access and could abscond with the money while you’re sitting twiddling your thumbs.

Very true, thank you for responding! I'm learning a lot through this experience.

 

[Matty B13]

I wasn't aware of that, this is my first resell and the paperwork said to be returned by 11/15 so I wrongly assumed that included the funds as well.

Since you can wire funds almost the same day to the Title Company, that is why it is prudent to wait till you hear from the Title Company. Most times it doesn't matter, but things like this can happen. You will get the hang of it after your 2nd....... or 5th contract, you will learn the questions to ask before making offers on contracts as well. Just keep on reading this boards.

 

[sndral]

I think an issue you are probably wrestling with is that you purchased a smaller VGC contract…. and those can be hard to find if you back out of this deal… I’d wait it out….

Ah, VGC, those are rarer than a blue hens tooth, so I’d likely buckle up & just wait it out. A generic SSR contract not so much.

Since you can wire funds almost the same day to the Title Company, that is why it is prudent to wait till you hear from the Title Company. Most times it doesn't matter, but things like this can happen. You will get the hang of it after your 2nd....... or 5th contract, you will learn the questions to ask before making offers on contracts as well. Just keep on reading this boards.

I consider myself a savvy buyer & even though my first resale purchase took forever due to divorcing sellers, I still wired my money right away for every subsequent resale purchase - by the time I’d made it through ROFR I was so eager to get my hands on my new points that I didn’t want to slow things down by making the escrow company wait even a day or two for my funds to close the deal .

 

[DonMacGregor]

Ah, VGC, those are rarer than a blue hens tooth, so I’d likely buckle up & just wait it out. A generic SSR contract not so much.

I consider myself a savvy buyer & even though my first resale purchase took forever due to divorcing sellers, I still wired my money right away for every subsequent resale purchase - by the time I’d made it through ROFR I was so eager to get my hands on my new points that I didn’t want to slow things down by making the escrow company wait even a day or two for my funds to close the deal .

Same here. I just wire the money the minute I get the wire info from the title company. There are enough delays in the process already, and me not sending money doesn't need to be another one. Plus, I like to get everything done and out of the way. I also take my packet to the notary the day I get it and make sure it's dropped off with FedEx that afternoon. More stuff to spend my time on than drawing what should be about an hour or so of my time into 3 or 4 steps/trips. It's not like the money is going anywhere, and the interest lost on a few extra days isn't going to make or break my retirement.

 

[HyperspaceMountainPilot]

Same here. I just wire the money the minute I get the wire info from the title company. There are enough delays in the process already, and me not sending money doesn't need to be another one. Plus, I like to get everything done and out of the way. I also take my packet to the notary the day I get it and make sure it's dropped off with FedEx that afternoon. More stuff to spend my time on than drawing what should be about an hour or so of my time into 3 or 4 steps/trips. It's not like the money is going anywhere, and the interest lost on a few extra days isn't going to make or break my retirement.

Counterpoint: 20k is making 5% APY in treasuries so holding on to it for a month gets you….at least enough for a small soda, maaaaaybe enough for a Mickey bar.

(I realize this is absurd as I calculate the numbers but I absolutely keep my money earning interest until the day before closing is scheduled and I’ve confirmed the sellers are good to go.)

 

[AstroBlasters]

Counterpoint: 20k is making 5% APY in treasuries so holding on to it for a month gets you….at least enough for a small soda, maaaaaybe enough for a Mickey bar.

(I realize this is absurd as I calculate the numbers but I absolutely keep my money earning interest until the day before closing is scheduled and I’ve confirmed the sellers are good to go.)

That’s $83… with no state or local tax…. that’s real money…