If my closing date passes can I terminate a purchase agreement?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my closing date passes can I terminate a purchase agreement?
We are 3 days away from the closing deadline in our purchase agreement of a foreclosed home, and the required FHA repairs won’t likely be completed in time. We’ve felt like we’ve waited long enough, and we’ve found a better home nearby that we’d rather buy instead. The mortgage company has everything ready to close. The only thing standing in the way is the completion of the repairs. If the repairs are not done in time preventing us from closing by the deadline, can we legally terminate the agreement, get our earnest money back, and pursue another home?
Asked on November 22, 2011 under Real Estate Law, Indiana
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Most likely you will not be able to terminate the purchase of the home due to the fact the FHA repairs are not yet completed in that under the terms of your FHA loan, the repairs are required for closing. In order to be sure as to this opinion, I would consult woth a real estate attoney on the subject.
However, it is not the seller who is delaying the close nor you. It is third party experts making the required repairs as a condition of your loan to purchase the property. Had you not had a FHA ,oan, then you would have been able to close the escrow without the need for the repairs. You could have received a credit from the seller as part of a reduction in the home's purchase price. Good question.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.