It is very common for a Buyer and their agent to receive the Bank Addenda paperwork and not only have questions but a severe case of heartburn and anxiety. Some of the Addenda are written in true legal and scary fashion, others are somewhat straight forward.
If the Buyer gets scared enough to go see an attorney prior to signing, the attorney will likely point out that the Addendum is geared in favor of the Seller-DUH! Then the attorney goes about making changes to the paperwork and this is the beginning of the end of that transaction.
The Bank Addenda paperwork (usually) is written and used in all 50 states across the country so it is a universal document. NO CHANGES MAY BE MADE ON THE ADDENDUM. To make this point more clear, it means, no scratch outs and initials, no cross throughs, no additions....need I go on? Asking the Listing Agent to upload your counter after it clearly states that no changes may be made on the addendum is equal to us not following the seller's directions. This is a sure fire way for the listing agent to lose the listing. Some Buyer's Agents "insist" that it be presented because they feel their circumstances are special and will be an exception.
Not to be nasty, but in no cases, as in NONE, NADA, No Way Jose will bank addenda paperwork ever be allowed to be changed. This is 13 years of experience talking here and a quite few thousand closed transactions later. Your circumstances are not special....sorry.
The Per Diem Amount can be anywhere from $50 to $150 Per Diem charged to the Buyer if the transaction doesn't close on time. In 13 years I've only experienced this twice and in both cases, the Buyer and their Agent were clearly not performing in accordance to their accepted contract.
An example of this is presenting a Cash Offer, getting it accepted and then the Buyer decides to change it to a financing transaction. Is it me, or does anyone else realize that the Buyer at that point is no longer "in Contract" because they have changed the terms of the contract and performing differently?
Please- please- please do not use the line and rationale: "It's all cash at the settlement table." That dog won't hunt either. CASH means CASH. It means that your funds that you produced proof of are liquid and available and your INTENTION is to use them for the purchase of the house. To decide after the fact that the Buyer wishes to secure financing is changing the terms of the accepted bilateral contract.
This is the way the Bank/Seller/Asset Manager views your contract because...well...those are the terms that were presented and agreed upon by both parties. It is really that simple.
On Cash transactions, the Asset Manager gets all worked up when a Buyer is asking for an extension. The Asset Manager's goal is to close as quickly as possible and if the Buyer's funds are liquid as presented, then the Buyer should be ready willing and able to do so as soon as title is cleared. Short of funerals and being called to active duty not much else is a legitimate reason to ask for an extension on a cash transaction.
Ifyour Buyer and you, their Agent, are performing on your end of the agreed to terms and conditions of the Bilateral Contract, you should have no problems getting one extension- and no per diem charge as long as it is an issue beyond your control.
If there is a financing glitch- due to processing, that is beyond your control, communication with the Listing Agent, in writing, and the Asset Manager is key in keeping everyone on track and moving forward towards closing. These things happen and the Buyer's feet are not held to the fire as long as everyone, including their lender keeps talking.
If there is a financing glitch because the Buyer lied on their mortgage application....well then they really weren't "preapproved" were they? There are two issues here: (1) The Buyer thought no one would find out and (2) Their lender isn't much better for giving them documentation that said they were approved for financing when in fact the lender hadn't done their due diligence.
As long as the Buyer sticks to their original terms and conditions of the contract; communication between all parties continues to flow in writing; everyone is honest and upfront about any problems; the likelihood of any per diem being charged becomes slim.
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