Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
Did you have any contingencies in the purchase contact, such as a financing contingency that states that you have to be able to get financed at a certain rate for a certain amount for a certain period of time or the sale falls through?
How about an appraisal and inspection contingency that gives you the right to terminate if it doesn't appraise or fails an inspection?
Ok, in a situation like this, unless there is a clause that states "Time Is Of The Essence", then both parties have a "duty of good faith and fair dealing" to continue to work together to see if they can get the deal done and extend the time for obtaining financing or for getting a final rejection. You can't be penalized for trying to get financed and not getting an answer from the bank yes or no if the bank is dragging their heels.
So if the seller tried to keep your money once you get a final notice from the bank if you get rejected, then you can sue them under a breach of contract claim for their bad faith actions in not extending the time for you to get some final decision from the bank one way or the other. It isn't unusual for it to take past the stated deadline for a financing approval. But as long as the buyer is doing their best to get an answer, the seller has to wait or they can terminate and refund the deposit if they wanted to move on.
As an aside, in addition to being an attorney, I have also been a licensed Realtor for over 11 years...