Legal Question in Business Law in California

A proper legal analysis requires looking at the purchase document to see what is and is not said about late fees. If it states time is of the essence [not that essential as to liability as time clearly is important] and that there is $X penalty for every day delayed by you, you may very well be responsible for late fees. Problems that your lender caused are not the fault of the seller, who could argue, especially if there was another buyer for the same amount, that they lost interest on the net price they would have received, paid a month more of pro-rata property taxes, utilities,etc. Were all contigencies removed before the 5/25 closing date, did you make a request of them to hold escrow open, if the loan had not been late when would it have actually closed, did the lender promise you a specific date the money would be ready and then was negligent in not getting the work done and will they accept any responsibility for that [very unlikely they will pay anything]?

If the above is basically the situation, you should try to reach some type of compromise with the seller as the will likely be successful in a suit against you.

This should have been posted in the real estate section. Whether or not you can be charged late fees depends on your purchase and sale contract and/or escrow instructions, and whether time was made of the essence.

Your question can't be answered without reviewing the contract. The sellers can not charge a late fee unless your agreements give them the right to do so. You need, therefore, to read your agreements very carefully. Keep in mind, however, that you are asking the seller to change your agreements by asking to move the closing date. Doing this could have some cost to the sellers that you may not be aware of. You should also keep in mind that even if the agreements do not give them a right to impose a late fee per se, they probably can cancell the sale because you did not close when you agreed to. The best thing to do is talk with them, perhaps with both of your brokers as well. Getting lawyers involved will probably only make things worse at this point.

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