More details to this question:
Received offer to purchase real estate Feb.20th, closing date was set for April 5th...Buyers mortgage broker would not provide a clear to close until his divorce was final and buyer would not sign divorce agreement until April 1st to keep spouse covered on health insurance through April. the closing did not happen on the 5th and I refused to sign extension. Is contract now null and void?
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Real Estate Law Attorney serving Holland, MI
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Cunningham Dalman
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That depends. The first step in answering this would be to review the details of the purchase agreement. Many of them provide for an automatic extension if the lender approved but needs a little more time to close. If yours has that, it controls. Also, if you or your agent indicated a delay may be acceptable, you would have to honor that, and, if you have tolerated a week's delay already, you cannot simply pull the plug. If you have agreed to or tolerated a delay, you would need to give the buyer written notice a date, a reasonable time out (likely several days) for the buyer to close or you will then declare the agreement terminated. While "the law abhors a forfeiture", if you give the buyer a clear deadline a reasonable time out, courts will usually enforce the termination.
Answered on Apr 11th, 2016 at 5:15 AM