A common question is : What happens if the a date on my purchase and sales agreement has passed? Should i not worry about it?
The purchase and sales agreement outlines the duties of the buyer and the seller, it contains, price, terms and dates. No part of the contract should be taken for granted or ignored.
Home inspection Contingincy:
In most purchase agreements the home insoection contingincy states the buyer shall have __ days to conduct and report any unsatisfactory results to the seller, If this date passes, the buyer than loses the ability to back out or ask the seller to make repoairs on anything found.
Mortgage Committment Contingincy:
Basically a contingincy to obtain a mortgage protects the buyer, if as a buyer you do not get a loan committment, you need to let them know by this date in order to get your deposit back, in most contracts it states if you go by this date without lettiung them know your loan was denied, they consider the contingincy waived and your deposit is forfeited if you do not get a loan and close as specified in yoru contract. Please read your contingincy for what you have agreed to.
The closing date is the most important date, that is when the new home becomes yours or as a seller when you get paid so you can move onto to your new home. As a buyer you need to stay in contact with your mortgage company and closing compnay to make sure you can close within the date on your purchase agreement.
What to do if your dates expire on your contract:
The best thing to do is watch your dates and if they are getting close, have your agent write up an extension asap to a date that you will be able to meet. A seller may not take a date change well, so you need to include a letter from your mortgage company of why you need an extension, that there is an answer to the problem that caused the delay and they can close on or before the day you are extensing to.
Different states have different laws and use different variations of a purchase and sales agreement. the bottonline is when making the offer use realistic dates that can be met. Once you sign it agreeing to those dates, make sure you abide by them , if you can not ask for an extension. if the pass without you noticing, still write the extension and present it to the seller.
When in doubt, have your agent or attorney review it....
PLEASE LET ME KNOW WHAT YOU THINK? WHAT ARE YOUR EXPEREINCES TIPS OR ADVICE FOR THIS.
Updated July 24, 2010
Blog Written by
Godzyk Reaty Group