Recently an agent in my office was complaining about a closing being extended, not once, not twice, but three times and she didn't know how to make the bleeding stop. Sellers had had 3 contracts fall apart, had moved out of the house & were supporting 2 houses & mortgages. They could not affort that for long. So each time the buyer ask for an extention the agent & the buyer were thinking "We're just a few days from closing" if the mortgage company workes out the problems, It's better than starting from scratch to find an able & willing buyer.
I asked if she had delivered a DEMAND LETTER. Much to my surprise, she had no idea what a demand letter was. She has been very successful since coming to my office (Prudential Florida WCI Realty), and in discussing a number of things, discovered that she had been in the business less than 5 years. Of course, no one needed to use a document like that during the last 5 years! Every buyer was afraid they would be homeless and did everything & more to make the seller happy.
I explained the content of the DEMAND LETTER, who should receive the fully executed letter and what the letter should accomplish. She presented the idea to her seller, who agreed to do the Demand Letter and is now waiting to see if the buyer closes on the designated date.
SO WHAT SHOULD THE CONTENT BE?
1. A closing date 7 to 14 days from the date of the executed document
2. Forfiture of earnest money deposit if unable to close on the designated date
3. Signature of the party executing the Demand Letter
4. It should clearly be titled DEMAND FOR CLOSING
WHO SHOULD RECEIVE THIS DEMAND LETTER?
1. Everyone! (Selling agent, agent's broker, lender, closing agent)
This has worked for me, everytime, without fail. I'll continue to use it when needed. By thw way, I'm in Florida, don't know if it's legal where you live.
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