How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask socrateaser Your Own Question

socrateaser
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 34665
Experience:  Attorney and Real Estate broker -- Retired (mostly)
10097515
Type Your Real Estate Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

My son is buying a house. Will try to keep this short. His

Resolved Question:

My son is buying a house. Will try to keep this short. His loan will be with Rural America. The lender cannot meet the closing date of 8/30 due to the extra paperwork. The sellers' realtor is saying the lender should have caught that immediately and extended the closing date. The sellers' realtor also said if she had examined the paperwork better, she would have known as well that the date could not be met. My son's realtor said he had no idea this type of loan would have taXXXXX XXXXXer. The sellers are now demanding $35 a day for each day the closing is delayed. I understand that they moved out and had to rent a place to accomodate the closing date. However, should the three professionals (two realtors and one lendor) take some responsibility as well.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  socrateaser replied 1 year ago.
Hello,

Issues such as this are becoming much more frequent, because of the extensive requirements necessary to successfully document a loan, since the 2008 mortgage crises occurred, and the laws were changed to protect investors and borrowers from unscrupulous lender practices.

The real estate industry hasn't caught up to the reality that meeting the same closing dates that were once routine, is now generally impossible.

So, the answer is "yes," the agents should be telling their clients that the lender is not likely to be able to perform in the time allotted -- and the lender should be legally liable when it agrees to fund a loan in a timely manner, but fails to do so.

Unfortunately, there are no statutes or regulations that impose any requirements such as I describe. They are all simply giant loopholes in the federal real estate settlement laws (collectively termed, RESPA).

The seller's demand for additional compensation, if it is not expressly provided for in the contract, is unenforceable. And, if the seller cancels the deal, then that means the seller will have to find a new buyer. So, the seller really doesn't have much leverage here, if the buyer simply refuses to pay anything more than the contract price.

That said, if I were your son, I would tell the lender and my agent, that if I'm charged one penny more than the contract price for any of these delays, when everyone involved almost certainly knew in advance that the sale wouldn't close in time, that I will sue both agents and the lender, for breach of fiduciary, and I will complain to the real estate commission.

And, then I would kindly ask that everyone throw in some dough to assist the seller, because they are the ones who have created the crises.

Please let me know if I can be of further assistance.

Hope this helps.
socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 34665
Experience: Attorney and Real Estate broker -- Retired (mostly)
socrateaser and 5 other Real Estate Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.
 
 
 
Chat Now With A Real Estate Lawyer
socrateaser
socrateaser
Real Estate Lawyer
34665 Satisfied Customers
Attorney and Real Estate broker -- Retired (mostly)