Expert: Dick Dennis - 7/4/2010

Question
I put an offer on a home at the end of May, and it was accepted by the selling bank on June 1st, 2010.  I found out that the title company was struggling due to some liens and a judgement on the home.  Now over 30 days from the agreement being accepted and signed I was called by my realtor to let me know the listing agent and the seller are wanting to extend the closing out as far as August 2nd.  I work in a retail business where I can't take time off after July 15th until after November 15 due to our busiest season so now I am at a loss.  I put down earnest money for a home that I can not buy, or at least move into.  Before I can move into it there are some minor repairs to be made as well.  Originally, I was told we would close on or before June 21st since it was a cash offer purchase.  I went as far as ordering my appliances and have had to already extend out the delivery once, and have to hope they will extend it out one more time.  What if any recourse do I have against the seller and listing agent?  I mean how can it be legal to list a home that can't close in a timely manner?

Answer
Unfortunately, David, occurances such as this are more common than we would like to admit. If your Realtor is experienced in the short sale and foreclosure business, he/she will tell you. However, if you're going to place the blame anywhere, place it on the listing agent. The listing agent should have obtained a preliminary title report on the property BEFORE actually putting the property on the market. This is something a GOOD Realtor normally does, for one thing if none other, and that is to make sure the property has a marketable title. This way the title condition would have been known. You may have never known about the property and could have bought another home.

If the agent DID know about the title condition then you may have cause for a court case. A conversation with a REAL ESTATE attorney may be worthwhile. . . and then it may not.

At this point, you don't have too many alternatives, David. You can simply pull out and go find yourself another home. The fact that you are working with an all cash offer should allow you the opportunity to find another home of equal or better price and/or condition. Otherwise, just tell all the parties concerned that you have no intention of closing this transaction until AFTER November 15. Then let them squirm in their mire. I do wish you well.

Dick Dennis
CA Real Estate Broker
Lic # 00349415
dixiedee13@aol.com