Legal Question in Real Estate Law in New York
Does House have to come off the market with signed contract?
If both the buyer and seller sign the real estate contract, can the seller still have the house on the market while I (the buyer) am in the process of waiting for the approval (committment) of my mortage? If they get another offer/buyer while my mortgage is in progress, I will lose the application fee, appraisal fee and the money I'll need to pay to lock in the rate - altogether about $2000. Can the seller back out if the mortgage approval takes 'too long'?
3 Answers from Attorneys
Re: Does House have to come off the market with signed contract?
These matters should have been covered in your contract. If you are beyond attorney review, with only the mortgage contingency open, with a specified time period to obtain the commitment, you should have no problems if you have timely applied for and receive the commitment. Most contracts specify that no offers can be taken during the contingency period. If the contract is silent, the seller can take contingency offers, but cannot make a new contract until the contingency period has ended and you have failed to get your mortgage.
Re: Does House have to come off the market with signed contract?
The seller can certainly take contingent offers
pending the closing. The contract should state how long you have to obtain the mortgage. This may be extended for a reasonable time.
Re: Does House have to come off the market with signed contract?
The contract, if properly drafted, will specify a date by which you must get your mortgage commitment by. If you don't get your commitment, you will lose the deal and your application and appraisal fees.
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