What can be done if a buyer can’t close?

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What can be done if a buyer can’t close?

I see there is something to cover the buyer if seller is unable to close but what if the buyer can’t close because of the finance company. What can be done for the seller, if the seller is waiting for the monies from the buyer to buy her new home. The buyer’s finance company has postponed the closing 5 times. So what kind of legal recourse does the seller have?

Asked on August 3, 2012 under Real Estate Law, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You need to take your contract to an attorney to review.  Sellers have a protection known as the "time is of the essence" clause in a contract that forces a buyer to put up or shut up, so to speak.  If the buyer does not close with in generally a 30 day period after the time is of the essence letter is sent the contract is deemed void and the seller can usually keep the don payment.  You may have an implied time is of the essence clause and you may have other breach of contract claims but only an attorney who reas the document can tell you that.  I know that you want the sale to move forward but you have to face the fact that it may not in the end and knowing sooner rather than later is best.  Good luck. 

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You need to take your contract to an attorney to review.  Sellers have a protection known as the "time is of the essence" clause in a contract that forces a buyer to put up or shut up, so to speak.  If the buyer does not close with in generally a 30 day period after the time is of the essence letter is sent the contract is deemed void and the seller can usually keep the don payment.  You may have an implied time is of the essence clause and you may have other breach of contract claims but only an attorney who reas the document can tell you that.  I know that you want the sale to move forward but you have to face the fact that it may not in the end and knowing sooner rather than later is best.  Good luck. 


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