If the appraisal correction deadline is missed for a buyer VA loan can the contract be cancelled?
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If the appraisal correction deadline is missed for a buyer VA loan can the contract be cancelled?
The agent is claiming that the VA loans do not have to meet deadlines in contract
and that the seller must extend the time. This will cause the seller to miss their
deadlines on the purchase of their other home. They are stating that VA loans do
not have to comply as the sent a notice of correction.
Asked on May 10, 2018 under Real Estate Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
No, the seller does NOT have to extend the time unless the contract itself says so (e.g. has a clause calling for extension in the event of a loan delay). The contract is between the buyer and seller; the seller's rights under the contract or the buyer's obligations are not affected by the actions of third parties, including the VA, or delays beyond the seller's control. So unless there is something in the contract itself requiring an extention or delay, the seller could cancel the contract if and when the buyer misses some required deadline or otherwise breaches the contract in a material or important way.
Also, the seller does not need to reduce the price to help the buyer get the loan the buyer wants: the buyer is the one who needs to make his financing happen or otherwise figure out how to afford or purchase the home, not the seller.
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