Suppose you’re counting on the proceeds from selling your current home to complete your next purchase. If your buyer doesn’t close, you may suddenly be unable to close either. Your seller might be relying on that money for their own purchase—and the dominoes keep falling.
Meanwhile, moving trucks are booked, belongings are packed, and everyone is wondering where they’ll be sleeping that night. The lawyers are working to untangle the situation while the real estate agents help coordinate whatever comes next.
So, what do you do?
Once you’ve finished laughing, crying, or contemplating a dramatic new hairstyle by pulling your hair out, call your real estate lawyer.
A delayed closing doesn’t necessarily mean the deal is finished. Sometimes a missing document, delayed mortgage funds, or another problem can be resolved with a short extension. However, an extension needs to be properly agreed upon and documented. You shouldn’t assume you automatically have another day to close.
If the transaction falls apart, the next steps depend on the agreement and the circumstances. A seller may need to put the property back on the market, but should get legal advice before doing so. Sellers also generally need to take reasonable steps to limit their losses.
A buyer who defaults may lose their deposit and face a claim for additional losses, including a resale shortfall and certain carrying costs. Walking away can cost considerably more than the deposit. For further reading, SorbaraLAW provides an [overview of legal remedies available to sellers when a residential transaction fails].
If the seller is the one who fails to close, buyers may also have legal remedies. Your lawyer can explain the options and whether pursuing a claim makes practical and financial sense.
As your REALTOR®, my role is to help identify potential problems early, keep communication moving, and work alongside your lawyer when difficulties arise. Nobody can guarantee a trouble-free closing, but preparation and prompt action matter.
And if things do go sideways? Keep breathing, stay in touch, and let your legal counsel guide your next steps. A stressful situation is hard enough without making rushed decisions that create another one.
No comments:
Post a Comment