Tue 16 Feb 2010
Suggest RE Agents Add Clause to Purchase Agreements - Disclosure Delays
Posted by karen under Uncategorized
Delayed closings! Sellers getting mad. Buyers’ truck (with all of their friends) sitting in the parking lot! It’s a mess when you have to postpone the closing for another 3 days because of new GFE disclosures.
Prepare for the worst–hope for the best!
I suggest that you email your real estate agents (Hot Tip of the Week) to add a clause to all purchase agreements that says: “Automatic Closing Date Extension Granted by buyers and sellers due to RESPA and/or Disclosure delays”. (Or have them talk with their Broker on how best to word it for their rules.)
It’s better to have the “conversation” about the potential problem upfront–than at the closing table.
March 12th, 2010 at 12:48 pm
Clauses do not change the terms and conditions of a contract. Clauses just puts everyone on notice, so to speak. Be careful when working with REO sale transactions, as the bank/lender/REO asset management company calls the shots. In most cases, extending an REO contract will cost the buyer money. It would be better for all parties, buyer, real estate agents and lender to work together in communicating these new laws and changes in mortgage lending in the front end of a purchase contract.