Legal Question in Real Estate Law in Massachusetts
We signed a 08/15/14. The Time Performance stated in original P&S was 09/05/14. The Seller had an issue with the title and informed us on 09/14/14 and the realtor envoked Paragraph 10 which states "If the SELLER cannot convey title as required by this Agreement or cannot deliver possession of the Unit as agreed, or if at the time of the delivery of the deed the Unit does not conform with the requirements set forth in this Agreement, upon written notice given no later than the time for performance from either party to the other, the time for performance shall be automatically extended for thirty (30) days." Per Paragraph 10, tThe realtor stated we had to agree to change the closing date from 09/05/14 to 09/19/14. We have not received a clean title and decided to not purchase the property as of 10/06/14. The Realtor is telling us that the 30 day extension per Paragraph 10 changed from 30 days from 09/05/14 to 30 days from 09/19/14 when he made us sign a new closing date. Is this correct? It doesn't make sense, the seller would keep getting another 30 days added on, each time he changed our closing date due to not getting the title cleared?
1 Answer from Attorneys
The realtor may not be correct in that the notice of title issue should be raised on or before the closing date. Nevertheless, if you agreed to change the closing date you might have to extend to 0ctober 19th. I strongly suggest you contact a real estate attorney in your area to review the documents you signed. You could take the position the 30 day extension expires 10/6/15, but there is no additional extension to close if this goes past 10/19 regardless.
Do not sign any more extensions to close without having the documents reviewed by an attorney.
Who is the closing attorney? I would contact him immediately to determine the status of the title and if you do not have your own attorney I would get one to review the documents and assist you with this matter. If the closing proceeds make sure you buy owner's title insurance.
If you want you can call my office Friday to discuss the matter.