We are in the process of buying a home in Danvers, MA but the seller is unable to find a replacement property by the time the sixty day escrow closes. They have requested an extension of thirty days. If we do not agree to that extension, what will happen? Will we lose the appraisal fee, the home inspection fee, and our deposit? If we do agree, do we get any thing in return?
In a standard Purchase and sale agreement where the parties have agreed to close on a certain date and the seller agrees to vacate on or before the closing date and there is no provision saying the sale is subject to the seller finding replacement housing, then the Seller has no legal right to postpone the closing. Unwilling or unable to move out is not a valid reason to extend the closing date unlike a title issue where Seller does have an automatic 30 day extension built into the Purchase and Sale agreement. However, Buyer may accommodate Seller’s desire to extend and ask Seller to reimburse him or her for any additional fees incurred due to the lender fees involved for such extension. If the Seller is unwilling to cover the additional costs and will not close on time, then Buyer will need to consider whether the costs of taking legal action is worth the additional extension fees, if any.
The Beliveau Law Group: Massachusetts | Florida | New Hampshire
The attorneys at The Beliveau Law Group provides legal services for estate planning (wills and trusts), Medicaid (planning and applications), probate (estate and trust administration), business law (formation and operation), real estate (residential and commercial), taxation (federal and state), and civil litigation (in connection with these practice areas). The law firm has offices and attorneys in Naples, Florida; Boca Raton, Florida; Danvers, Massachusetts; Waltham, Massachusetts; Quincy, Massachusetts; Manchester, New Hampshire and Salem, New Hampshire.