QUESTION
Buyer's rights in TX when closing date may change
Asked on Jun 12th, 2014 on Breach of Contract - Texas
More details to this question:
According to our contract, the closing date is the 18th. In order to be approved for the FHA loan, the seller has been informed to replace the roof (2 weeks ago). A 2nd appraisal has to be done (buyer has to pay for both), to date, the seller has not replaced the roof. Buyer's must be out of the rental property by the 30th. What are the buyer's rights if the seller does not have the roof replaced before closing date of 18th?
1 ANSWER
Texas law may be different, but in NY, the date set in the contract is not mandatory, and either side may adjourn without penalty. It is only when one side, a reasonable time beforehand, notifies the other that "time is of the essence" that the date set for closing becomes material such that a refusal to close on that date can be considered a breach of contract. If this is also the law in Texas, you or your attorney should immediately send a "time of the essence" letter to the seller setting a closing date before 6/30.
Answered on Jun 12th, 2014 at 2:57 PM