Can a seller be forced to wait until we can close due to an oversite on his part?
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Can a seller be forced to wait until we can close due to an oversite on his part?
We made an offer on a house and it was accepted. The approval letter is signed; the contract states that we are going FHA. We just found out that the seller just bought the house 2 weeks ago and was planning on flipping it. This means that he couldn’t sell it to us for 90 days and he’s not willing to extend our closing date. They said that the only option for us is to pay cash or obtain a conventional loan. Going convential means our rate goes up, our payment goes up $300 a month, we have to put down more, and the lender wants us to sell our only vehicle with a car payment so we can
qualify. Both our agent knew we were going FHA along with the seller, it’s clearly stated on the pre-approval letter and the signed contract by both parties. I was unaware that there is a 90 day rule on a flip. Are we just out of luck?
Asked on February 14, 2017 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
No, he cannot be forced to wait. It is your obligation, not the seller's, to be able to come up with the financing by the agreed upon closing date; if you cannot, you will be breach of the contract or agreement. Your financing issues are, to be blunt, your issues, not the seller's. He can agree to wait, and may, but he is not required to accommodate you.
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