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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 36622
Experience:  16 years real estate, Realtor. Landlord 26 years
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We've entered into a contract to purchase a home in Canal

Customer Question

We've entered into a contract to purchase a home in Canal Winchester, OH. and we've been using Huntington Bank to acquire financing. We were supposed to close June 12, 2017. Huntington Bank continues to ask for more and more financial documentation meanwhile we signed an extension addendum that is scheduled to expire Midnight June 16, 2017. Can the sellers sue us for Breach of contract because we couldn't acquire financing?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Ohio
JA: Has any paperwork been filed?
Customer: Filed?
JA: Anything else you want the lawyer to know before I connect you?
Customer: No
Submitted: 12 days ago.
Category: Real Estate Law
Expert:  Barrister replied 12 days ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney and will try my best to help with your situation. There may be a slight delay in my responses as I type out an answer or reply.

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You may also be offered a phone call, but those don’t come from me and are offered by the website and you are under no obligation to accept.

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Do you have any financing contingency in the purchase contract that says you can walk away if you can't get it financed?

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Is the seller threatening to cancel the sale?

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Was there the phrase "Time is of the Essence" in the contract anywhere?

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.thanks

Barrister

Customer: replied 12 days ago.
I haven't heard that the sellers are threatening to vacate the sale. We do have a signed addendum that extended the purchase which has been in process since May. The addendum expires midnight tomorrow.
Expert:  Barrister replied 12 days ago.

Ok, how about the clause I mentioned?

Expert:  Barrister replied 12 days ago.

In a real estate transaction, both parties have a duty of good faith to work together to get the deal done. So if there is no "Time is of the essence" clause, then all deadlines are "soft" meaning that as long as the parties are working towards a close, both sides have a duty to extend them.

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So if you have a financing contingency clause in your purchase contract (and you should, as well as an appraisal continency) then if your financing falls through, you get your deposit back and both parties walk away as if they had never met.

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But as long as you are moving towards a close, the seller has a duty to work with you.

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As an aside, in addition to being an attorney, I have also been a licensed Realtor for over 15 years and used to be a closing attorney for 4 different lenders..

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thanks

Barrister

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