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  • June 30, 2011 at 8:56 AM #18904
    Huckleberry
    Participant

    My girl friend is selling her condo. The purchasers are from China and buying for their son.

    The closing was supposed to take place on the 06/27. On the 24th, per their agent, they accidentally put the incorrect address down for their loan, this postponed closing for a week. Now we have received word that they are behind on 2010 taxes per the IRS and closing will be delayed until AT LEAST the 11th.

    My girl friend has already moved out, stored everything and moved in with me. Having incurred many moving costs already she is now faced with additional mortgage, property insurance, property tax and HOA expenses. We estimate the delay to the 11th to cost her at least $2000.

    Considering the delays are the fault of the purchaser, what legal responsibility do they have to reimburse the seller?

    If the purchaser is not held responsible, they can technically drag their feet as long as they like. Legally, how long can they keep pushing closing out? At what point are there financial repercussions for them?

    Technically, who holds responsibility to inform the buyers that costs are being incurred by the seller and they should act accordingly in clearing up the issues and seller expense reimbursement?

    June 30, 2011 at 10:07 AM #706796
    clearfund
    Participant

    Huckle – Typically her only recourse is to cancel the sale for non-performance (after issuing the proper notices to perform, of course) and demand the escrow deposit as compensation. Likely her contract says that the deposit amount is her full liquidated damages.

    Or she can ask/negotiate for compensation and keep on with it, but the buyer’s are likely under no obligation. It is her decision to fish, or cut bait.

    June 30, 2011 at 10:07 AM #706893
    clearfund
    Participant

    Huckle – Typically her only recourse is to cancel the sale for non-performance (after issuing the proper notices to perform, of course) and demand the escrow deposit as compensation. Likely her contract says that the deposit amount is her full liquidated damages.

    Or she can ask/negotiate for compensation and keep on with it, but the buyer’s are likely under no obligation. It is her decision to fish, or cut bait.

    June 30, 2011 at 10:07 AM #707493
    clearfund
    Participant

    Huckle – Typically her only recourse is to cancel the sale for non-performance (after issuing the proper notices to perform, of course) and demand the escrow deposit as compensation. Likely her contract says that the deposit amount is her full liquidated damages.

    Or she can ask/negotiate for compensation and keep on with it, but the buyer’s are likely under no obligation. It is her decision to fish, or cut bait.

    June 30, 2011 at 10:07 AM #707644
    clearfund
    Participant

    Huckle – Typically her only recourse is to cancel the sale for non-performance (after issuing the proper notices to perform, of course) and demand the escrow deposit as compensation. Likely her contract says that the deposit amount is her full liquidated damages.

    Or she can ask/negotiate for compensation and keep on with it, but the buyer’s are likely under no obligation. It is her decision to fish, or cut bait.

    June 30, 2011 at 10:07 AM #708007
    clearfund
    Participant

    Huckle – Typically her only recourse is to cancel the sale for non-performance (after issuing the proper notices to perform, of course) and demand the escrow deposit as compensation. Likely her contract says that the deposit amount is her full liquidated damages.

    Or she can ask/negotiate for compensation and keep on with it, but the buyer’s are likely under no obligation. It is her decision to fish, or cut bait.

    June 30, 2011 at 12:23 PM #706809
    SD Realtor
    Participant

    I would agree… check the purchase agreement as you may be able to get up to 3% for liquidated damages but that will be your responsibility to collect it through whatever means you can or are obligated to go through be it mediation/arbitration or court.

    You can try to stay in escrow and get an addendum where the buyers will pay for your expense due to the mistake they made but both parties need to agree to that. Try to hold a good poker face and threaten to cancel if they do not compensate you.

    June 30, 2011 at 12:23 PM #706907
    SD Realtor
    Participant

    I would agree… check the purchase agreement as you may be able to get up to 3% for liquidated damages but that will be your responsibility to collect it through whatever means you can or are obligated to go through be it mediation/arbitration or court.

    You can try to stay in escrow and get an addendum where the buyers will pay for your expense due to the mistake they made but both parties need to agree to that. Try to hold a good poker face and threaten to cancel if they do not compensate you.

    June 30, 2011 at 12:23 PM #707507
    SD Realtor
    Participant

    I would agree… check the purchase agreement as you may be able to get up to 3% for liquidated damages but that will be your responsibility to collect it through whatever means you can or are obligated to go through be it mediation/arbitration or court.

    You can try to stay in escrow and get an addendum where the buyers will pay for your expense due to the mistake they made but both parties need to agree to that. Try to hold a good poker face and threaten to cancel if they do not compensate you.

    June 30, 2011 at 12:23 PM #707657
    SD Realtor
    Participant

    I would agree… check the purchase agreement as you may be able to get up to 3% for liquidated damages but that will be your responsibility to collect it through whatever means you can or are obligated to go through be it mediation/arbitration or court.

    You can try to stay in escrow and get an addendum where the buyers will pay for your expense due to the mistake they made but both parties need to agree to that. Try to hold a good poker face and threaten to cancel if they do not compensate you.

    June 30, 2011 at 12:23 PM #708022
    SD Realtor
    Participant

    I would agree… check the purchase agreement as you may be able to get up to 3% for liquidated damages but that will be your responsibility to collect it through whatever means you can or are obligated to go through be it mediation/arbitration or court.

    You can try to stay in escrow and get an addendum where the buyers will pay for your expense due to the mistake they made but both parties need to agree to that. Try to hold a good poker face and threaten to cancel if they do not compensate you.

    July 1, 2011 at 1:42 AM #706889
    bake
    Participant

    Delays in closing are not uncommon, which is why I’ve always been surprised more contracts aren’t written with a 30 day seller leaseback after close.

    July 1, 2011 at 1:42 AM #706988
    bake
    Participant

    Delays in closing are not uncommon, which is why I’ve always been surprised more contracts aren’t written with a 30 day seller leaseback after close.

    July 1, 2011 at 1:42 AM #707587
    bake
    Participant

    Delays in closing are not uncommon, which is why I’ve always been surprised more contracts aren’t written with a 30 day seller leaseback after close.

    July 1, 2011 at 1:42 AM #707739
    bake
    Participant

    Delays in closing are not uncommon, which is why I’ve always been surprised more contracts aren’t written with a 30 day seller leaseback after close.

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