Real Estate Corner...
•Q. We just received a great offer to purchase our home. Problem is, the prospective purchaser wants to close escrow on November 15 th, just three weeks from now. Things are happening so fast, can the buyer really close in three weeks?
•A. Yes, the buyer can close in just three weeks, even if the buyer is obtaining financing for the purchase. The loan process can usually be completed in time for the closing; however, your REALTOR® has a very important responsibility to protect you against the following scenario:
Let's say it's three days before closing and you're still waiting for the buyer's lender to issue final approval on their loan. You're packing at a feverish rate, the movers are scheduled, utilities are transferred, services will be cancelled in three days, and you're made all arrangements predicated on the home closing on November 15th.
On November 14th you receive a call from your REALTOR® informing you that the processing of the loan will delay closing (or worse yet, the buyers have been declined for financing!). As you can imagine, the financial and emotional consequences of this call are devastating.
To prevent this scenario, your REALTOR® could place the following clause into the purchase contract: "If by November 5th seller and seller's agent have not received documentation of loan approval from purchaser's lender for the purchase referenced in the contract, sellers, at their exclusive option, reserve the right to adjust the closing date up to 15 days after such time as documentation of unconditional loan approval is received." Thinking ahead, and handling potential problems like this are just one of the reasons why you should be represented by a competent, caring REALTOR®.
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