Legal Question in Real Estate Law in Pennsylvania
My wife and I agreed to purchase a home from the seller with a closing date of 11/19. Days before the closing we were informed by the title search company that the property has an old mortgage on it and we could not get a clear title and close until this issue was resolved. We signed a few extension and just before Christmas we were told the problem was being handled and closing should be ready just after the new year. Now we are being informed that this matter will take an additional 2 to 2 1/2 month to clear. We have a meeting set with the seller and his attorney and I was wondering if it is reasonable to ask about dropping the price on the house to get back some of the expenses we gained from additional months of rent ( over $2000).
1 Answer from Attorneys
Thank you for your question.
Hi, and thank you for your question.
It appears that the seller's attorney was not doing what he was supposed to be doing because the first thing that I do when representing a seller is to ask for a payoff figure and a per diem from the seller's mortgage lender. This must be done well in advance of the closing date in order for the closing to go smoothly.
Your request to have the seller reduce the purchase price to compensate you for the additional rent you are paying is very reasonable. However, the Agreement of Sale would dictate whether or not you have a right to such a concession. You might have some leverage if the Agreement of Sale includes a clause stating that "time is of the essence" and states that "closing shall take place on or before (a certain date).
If your agreement of sale does not include these provisions and the sellers are not reasonable, there is a pretty slim chance that the seller will agree to any concession on the purchase price. If your attorney is an astute negotiator, they would be able to negotiate substantial concessions for you, in addition to having the sellers compensate you for the rent that you are paying because of their delay. When representing purchasers, I always address these issues in the Agreement of Sale and include a penalty clause for any delays in closing caused by the action (or, in this case, the inaction) of the seller(s). Please let me know if you need anything further - 610-259-2724.
Kindest regards,
ANDREA G. TILLIS
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