the seller just informed me that they will not be able to move out by our closing date on our real estate contract (selling a house to me), which is tomorrow, what can i do to preserve my rights and the contract that we have both signed and is valid until tomorrow
1 Answer from Attorneys
You should send a letter stating that you do not agree to giving them any more time to move out and that "all rights and remedies are reserved. I demand vacant, broom-clean possession of the property immediately."
You have several strategies. You can try to bust the contract, get the down payment + title expenses refunded. This takes time and $$$.
You can give them more time, but with condiotions:
ALL proceeds of the sale go into escrow. They get nothing until you get vacant, broom clean possession. You want them to reimburse you for interest on your mortgage; taxes and insurance get prorated as of the possession date; and they keep their liability insurance in place with you listed as an "Additional Insured Party." Make sure you see the "endorsement" that names you: a certificate is not worth the paper it's printed on.
They should pay you "use and occupancy." NOT RENT. DO NOT ACCEPT RENT.
If you hired me as your attorney, I could draft a letter agreement. You can call me 516-242-1453 (New York but my home is in Santa Fe).
They shouls pay for whatever attorney fees you incur