Is seller required to extend purchase agreement due to loan terms?
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Is seller required to extend purchase agreement due to loan terms?
Is seller required to extend purchase contract due to
loan terms requiring owner to own home 90 days on
conv loan?
Original contract was fha loan but purchaser
switched to conventional loan 3/4 through. Buyer
agent sent extension 1130pm day contract was set
to expire. Contract has now expired and buyer agent
is threatening to sue Bc seller wont sign extension.
Is a seller required to abide by 90 day flip rule on
loans?
Asked on November 19, 2017 under Real Estate Law, Louisiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
No, the seller is most definitely NOT required to extend a contract because of the buyer's loan terms. The contract was between the buyer and seller, not the buyer, seller, and a lender; what happens between the buyer and his/her lender(s), the lenders rules or requirements, or what loan(s) he/she chooses to pursue, has NO bearing on the obligation between the seller and buyer. The buyer had to make sure he/she could get the loan or close by when the contract required.
Of course, there is one exception: if the contract itself provided that it could be extended by the buyer due to any delay in loans or to meet loan requirements. A provision like that, if one exists, is enforceable.
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