Legal Question in Real Estate Law in New Jersey
Delay Closing
My in-laws sold their brownstone on their own. Their lawyer drew up the contracts with the closing date ''on or before June 27th''. The closing is just two days away and the buyer stated that they will need to delay the closing for a week to several weeks b/c their bank needs more time processing their mortage. My in-law's lawyer said that closings get delayed all the time and basically there's nothing we can do about it except to keep harrassing the buyers. My question is - is the contract still binding since the closing date was state on or before June 27th and not after that date? Aand can we ask for more money for each week they delay the closing?
2 Answers from Attorneys
Re: Delay Closing
I agree with Scott, although I have not seen the contract. You can make time of the essence by giving written notice, sent by certified mail, with a copy to the buyers' attorney. A minimum of 10 days must be granted. You can then put a penalty provision in the notice. I should caution you that if there was a mortgage contingency clause, depending upon the language of the contract, you may run the risk of losing the deal with no recourse. All of this depends upon contract language which I have not seen. This an a response to an Internet question and is not intended to be legal advice or to create an attorney-client relationship.
Re: Delay Closing
if the contract did not state that "time was of the essence", the buyer can delay the closing. You need to ste "timee of the essence" You should give the buyer ten days to close from the date of the original closing.
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