Is seller required to extend purchase agreement due to loan terms?

UPDATED: Oct 1, 2022

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Is seller required to extend purchase agreement due to loan terms?

Is seller required to extend purchase contract due to
loan terms requiring owner to own home 90 days on
conv loan?
Original contract was fha loan but purchaser
switched to conventional loan 3/4 through. Buyer
agent sent extension 1130pm day contract was set
to expire. Contract has now expired and buyer agent
is threatening to sue Bc seller wont sign extension.
Is a seller required to abide by 90 day flip rule on

Asked on November 19, 2017 under Real Estate Law, Louisiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, the seller is most definitely NOT required to extend a contract because of the buyer's loan terms. The contract was between the buyer and seller, not the buyer, seller, and a lender; what happens between the buyer and his/her lender(s), the lenders rules or requirements, or what loan(s) he/she chooses to pursue, has NO bearing on the obligation between the seller and buyer. The buyer had to make sure he/she could get the loan or close by when the contract required.
Of course, there is one exception: if the contract itself provided that it could be extended by the buyer due to any delay in loans or to meet loan requirements.  A provision like that, if one exists, is enforceable.

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 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.

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