If the appraisal correction deadline is missed for a buyer VA loan can the contract be cancelled?

Get Legal Help Today

 Secured with SHA-256 Encryption

If the appraisal correction deadline is missed for a buyer VA loan can the contract be cancelled?

The agent is claiming that the VA loans do not have to meet deadlines in contract
and that the seller must extend the time. This will cause the seller to miss their
deadlines on the purchase of their other home. They are stating that VA loans do
not have to comply as the sent a notice of correction.

Asked on May 10, 2018 under Real Estate Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

No, the seller does NOT have to extend the time unless the contract itself says so (e.g. has a clause calling for extension in the event of a loan delay). The contract is between the buyer and seller; the seller's rights under the contract or the buyer's obligations are not affected by the actions of third parties, including the VA, or delays beyond the seller's control. So unless there is something in the contract itself requiring an extention or delay, the seller could cancel the contract if and when the buyer misses some required deadline or otherwise breaches the contract in a material or important way. 
Also, the seller does not need to reduce the price to help the buyer get the loan the buyer wants: the buyer is the one who needs to make his financing happen or otherwise figure out how to afford or purchase the home, not the seller.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption