Re: extending the closeing date

If the contract makes "time of the essence," than the parties can usually back out if settlement is missed. Otherwise, the fact that the settlement date is missed usually will not be a breach of the contract of sale. You will have to look for other deadlines that are missed. If the problem is that the parties cannot agree on an item that was included in the inspection, look at that clause. Usually the buyer has a certain number of days to request repairs pursuant to the inspection. If the buyer was outside that time, the seller can insist that the buyer settle without the repairs. If the buyer got the request in on time, the seller usually has a certain number of days to agree to the repairs. If the seller does not agree within that time, the buyer can walk away without forfeiting his deposit. This information is based on the typical real estate contract that I have seen, you have to look at the contract that the parties signed. Their rights should be clearly spelled out.

If I can help you sort out these issues, let me know.

Re: extending the closeing date

Before answering, the specific contract language should be reviewed. Is "time of the essence" language used? Remedies for default language should also be looked at. If not "void" contract may be "voidable" by non breaching party. But who is in breach? Seller won't agree to repair and buyer won't close without it. Deposit escrow holder may need to seek court intervention. If you have additional questions, I can be reached at 703-915-1401