You had a home inspection done and issues were found. After negotiations with your seller, repairs are finally being done. The closing date is imminent, however, and the repairs are nowhere near done. Should you delay the close of escrow if repairs are still being done?
To remain on the safe side: yes, you should.
Delays are expected
It’s not uncommon to encounter delays in the home buying process. In fact, numerous factors can hinder the close of escrow. The reasons can range from low appraisals to problems with the title or moving day.
Getting an extension on the closing of escrow is, therefore, a fully acceptable hiccup in the home buying process. Just make sure the terms are fully agreed upon by you and your home seller.
What you should do
Don’t settle for a verbal agreement when it comes to escrow extensions. Like everything else in the home buying process, make things official by having necessary paperwork signed by both parties. Don’t forget the following as well:
- Ask your seller to give an accurate estimate of time needed– Before you extend the close of escrow, sit down with your seller and discuss a timeframe regarding the repairs being made. Assess the situation and come up with solutions– it will help you and your seller meet deadlines and settle on a new closing date.
- Fill out paperwork– It wouldn’t hurt to fill out an “extension to the closing date” addendum in the presence of your legal expert and your real estate agent. Forms for such things are readily available. Add the new closing date and make sure to send the completed form to your seller for review. Don’t forget to make copies for safekeeping as well.
- Make sure the other party agrees– Setting a new closing date without the approval of the other party can spell trouble. Make sure you and your seller are on the same page before you sign and make things final. Don’t hesitate to negotiate — the reason why an extension on close of escrow is being filed is to give ample time for conditions to be successfully met.
- Submit the paperwork – Your closing agent must also be privy to the extension. Hand the paperwork over to the closing agent. He or she will then inform your lender and other parties involved in the sale about the extension date. The terms of conditions will then be reviewed and fulfilled before the execution of the transfer of deed. Once that is done, the transaction will be recorded in the county recorder’s office.
What happens if the seller doesn’t agree with the extension?
In the event your seller wants to continue to close of escrow despite conditions on his end not being fulfilled, it’s time to consider terminating the sale and looking for another home. You don’t want to end up the loser in this process, especially if it’s not your fault repairs are taking a long time. Hopefully, a better property is waiting for you.
Do you have any questions on any of this? Get in touch with me at 760 622 5087 or at firstname.lastname@example.org