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Real Estate Agent with Realty ONE Group Advocates 484-237-2055 PA License - AB067198

There are all sorts of reasons why a transaction can go awry. Sometimes people simply change their minds, sometimes it is because of things outside of the transaction happening. And sometimes is is because of the actions of one of the parties involved directly. But, our challenge this month is to relate such an incident to and explain how we addressed the issue.

This story actually is for a referral I gave to another agent just outside my area. I had the partner of a client's daughter needing to sell her mother's home. Everything went very smoothly, the agent I referred and the client got along very well. Advice was given, the home was prepared for sale, and the home went on to the market.

There was lots of activity, offers were made, and one was accepted, inspections were done, everything was moving forward to settlement nicely. Then the buyer asked for a delay of settlement. The mortgage provider was not ready. A delay was approved.


Then it was discovered when the mortgage provider eventually accepted that the buyer could not close, that the buyer had not filed taxes for three years on time, and now had back taxes outstanding which prevented them from being able to settle. It became evident the mortgage provider had known this for some time and had not disclosed the issue or the problem.

So, the home has been relisted for sale and we shall hopefully see a quick offer and settlement. In the meantime, the seller is not going to be quick to release the deposit to the seller, in the hope that the seller will compensate them for the inability to settle by releasing the deposit to the seller.

In PA both seller and buyer need to agree how the deposit is released, if they cannot agree it continues to be held in escrow till a court assigns the funds or after a certain time as designated in the contract,  one or other of the buyer or seller request release of the funds directly as long as there is no legal proceedings taking place. 

Posted by


Nick Vandekar
Nick is a Tredyffrin Easttown Residential and Commercial REALTOR selling The Main Line, Chester, Delaware and Montgomery Counties.

Giving you the confidence to make
the right decisions.

225 W Uwchlan Ave
Downingtown , PA 19335
Office 484-237-2055
Mobile: (610) 203-4543 [call or text me]
Email Me


My Blog


If you are buying or selling on or around
Tredyffrin Easttown or along the Main Line, 
I can help you, contact me.


Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Nick and thank you for sharing this blog with us today in the Rain.  Can be so many things.

Mar 08, 2023 09:24 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Nick - everything is going well until it isn't.   An accepted offer does not mean it's a 'done deal'.  Time spent in real estate can teach many lessons - one of the most important - it's not over until it's over. . .      Good luck to all anticipating their closing day.  

Mar 08, 2023 10:23 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Nick,

Sometimes these things happen even with what appears to be proper vetting. We all know its not over until all parties sign at the closing table and the loan is funds! I'm going to think positive the right action is taken!

Mar 08, 2023 11:43 AM
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Nick Vandekar, 610-203-4543 - thanks for the entry into the March To A Solution |ActiveRain March 2023 Challenge. That was very confusing. Not disclosing back taxes is a serious problem. PA Real Estate Law is a lot different than in TX. It pays to have a knowledgeable REALTOR and credible Mortgage Companies. 

Mar 08, 2023 12:05 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Nick:

Sounds like this mess could have been avoided if the buyer, and lender, had done what they should have. Hope it all gets resolved satisfactorily.


Mar 08, 2023 01:40 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nick here in California once the buyer removes their contingencies, loan, appraisal, and investigation and the cannot close for whatever reason they are jeopardizing their Earnest Money Deposit. Now keep in mind it takes two signatures to cancel buyer and seller. Hence often times it becomes a renegotiations game  all about how much the seller keeps, Endre

Mar 08, 2023 08:43 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Nick... what a mess! In North Carolina, financing is not a contingency in the contract -- it says so in big bold letters. If you can't get financing you need to know that before due diligence period ends and terminate the contract prior to the end of due diligence. But you still lose your due diligence deposit. If you terminate after you due diligence ends, you are in breach of contract and seller also gets to keep the earnest money deposit. 

Mar 09, 2023 05:13 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Working with buyers that don't have their ducks in a row can prove difficult for closing.

Mar 09, 2023 06:12 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

I am scratching my head on this, Nick. I was wondering HOW could that happen. Then I read that the lender knew and did not disclose. So then, why tell a buyer, who would also know about the tax issue, they can buy a house!? 

IMO the seller deserves compensation.  

Unfortunately, the lender has no real skin in the game. Apparently never did!

Thank you for participating in the March challenge. 

Mar 09, 2023 08:19 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

An all-too-familiar story in our business. Yikes - not filing taxes for 3 years - not good.

Mar 09, 2023 12:26 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Will Hamm thanks for stopping by.

Michael Jacobs very true

Dorie Dillard Austin TX as we say in England it isn't over till the fat lady sings. I have no idea where that expression comes from and is probably not politically correct anymore.

Patricia Feager, MBA, CRS, GRI,MRP thank you.

Mar 13, 2023 08:23 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Jeff Dowler, CRS that is often the case.

Endre Barath, Jr. like you both seller and buyer have to sign to release the money, we shall see what happens.

Nina Hollander, Broker who gets the finds if it cannot be agreed between buyer and seller often becomes a court or mediation action.

Brian England very true



Mar 13, 2023 08:25 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Kathleen Daniels, Probate & Trust Specialist obviously the lender did not do his job which is why I find mortgage pre-approvals and pre-quals not worth the paper they are written on.

Dr. Paula McDonald not filing taxes is never good.

Mar 13, 2023 08:27 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

wow, what a mess, and I don't blame the seller at all for wanting to hang onto to their deposit ..

Mar 13, 2023 08:52 AM