Expert: Matt Heisler - 8/28/2007

Question
I am buying a property in Quincy MA.  The closing date is this coming Thursday 8/30.  I just find out that the seller (A church group) doesn't have a person that has the power to sign the closing paper.  My loan's rate lock expire on 9/4.  I am not sure I will be able to close on either 8/31 and 9/4.  

Now, the question is what are my option if I still want the property.  Do I need to apply for the loan again?  If I don't want the property, I will/should get my deposit back, right?  Can I ask for other compensation related to the inspection cost, appraisal?

Thanks
-Danny

Answer
Hello Danny:

Assuming that there is no specific contingency in the P & S that covers this scenario:
A) The seller is responsible for closing at the assigned date and time.  If they fail their responsibilities, you can receive all your deposit money back and cancel the deal. Essentially, their problem is not your problem. However, they may dispute your ability to not perform, in which case your money may remain in escrow for some time, until the dispute is arbitrated and settled.  So don't count on getting the money on 8/31.

B) Most people just agree on a new date and time.  If you can not, you may be able to get them to pay for a rate -lock extension to keep the deal together.  It is unlikely that your mortgage company will care about 2 or 3 days as far as closing on the loan, but the rate lock really depends on their business practices.  Rates have gone down for many mortgages, your new rate may be better.

C) Ultimately, this is a legal question that is answered in your P & S.  I would check with your attorney to validate your options.  Remember, asking a seller to pay expenses that are for their fault doesn't mean they will.  That will depend on whether they feel it's easier to get another buyer or to make you happy.  It's a choice.

Matt Heisler
Heisler & Mattson Properties