Who is negotiating closing date after P&S (Boston)?

Question

Hi BP,

I would like to confirm that if it is still buyer agent job to help negotiate the closing date after the P&S?

So, the fire alarm test for my new purchase failed, and seller needs time to address it. Seller wants to close at the end of March, but I want to close early April.

I told my buyer agent to bring this new closing date request to seller agent, but he told me that it is my lender attorney to negotiate this new closing date. I disagree with this though. It is still buyer agent job??

I think that lender attorney is only required that I give him enough time to do his paperwork and I that my new closing date fits his calendar.

I closed on a few properties in the past, and I never had this problem. I always give a closing date and seller/lender attorney work to align it.

What is your thought on this?

Ned Carey · Answer

@Chan K. what happens when you pressure the seller to close sooner and then your lender cannot fund in time? You have egg on your face. Settlements get delayed all the time. Five years from now will it really matter the settlement got delayed a week or so?

That said your buyers agent has a fiduciary duty to you. If you tell him to negotiate a closing date that is his duty.

Mike Hurney · Answer

@Chan K.

That said your buyers agent has a fiduciary duty to you. If you tell him to negotiate a closing date that is his duty. @Ned Carey  I think your Buyer Broker may sabotage the deal if they are reluctant to do your bidding.

I would do it myself and meet the seller directly and negotiate what you're looking for.

PS Who's the Broker?

Russell Brazil · Answer

If the need for the delay in closing is due to the seller, and falls within the terms which give you the right to cancel the contract (The fire alarm issue) then they could not attach your deposit.  However there are a couple of important points.  Anytime a contract is cancelled, you will need to get both parties to sign off on releasing the deposit. Even if they have no right to the deposit, it still needs to be released. This doesnt happen that often, but it does happen if their is animosity between the parties in the transaction.

As for closing costs, there shouldnt be any lender costs due if the property does not close. However there could be title attorney costs due for the work they have done. Also the appraisal and home inspection fees you already paid are already paid for.

Mike Hurney · Answer

@Chan K.

This is like Battered Wife Syndrome "... but sometimes he's a nice guy..."

Chan K. · Answer

@Mike Hurney Hi Mike, I did read that line "I would do it myself and meet the seller directly and negotiate what you're looking for." I don't have contact straight to the seller. Everything has been going through the buyer agent. Then, at some point, the buyer agent starts talking directly to lender attorney bypass me, but CC me in the email instead. Strange ..... I have to mention to him to go back to basic as he told me that it is normal that he talks directly to lender attorney. (I am not saying who is right/wrong, and he is entitle to his own judgement).

From my opinion, lender attorney is representing the bank interest only. He does not talk to seller either. Everything is so unconventional.

In any case, will see how this thing plays out. Sound like the deal is going dead, following by court case ..., I guess. Right now, seller is sitting with my two deposits.

@Troy Fisher No sure if you ever bought multifamily before. If you did, your process might be different from mine at/after acquisition. So from your conclusion without given any details to me, look like we are not aligning.

Mike Hurney · Answer

@Chan K. You may have missed this:

"I would do it myself and meet the seller directly and negotiate what you're looking for."

Troy Fisher · Answer

If your original closing date was 3/21 (today) and they are trying to move the close to next week, why push so hard for closing after rents are collected?  Seems like you should have been ready to collect rent in April already.

Chan K. · Answer

@Mike Hurney Hi Mike, I did ask the buyer agent to speak directly to seller agent and seller, but that is not allowed. Seller hired an attorney to represent him. The only concern I have also is that why does seller attorney talking to the lender attorney as the lender attorney does not represent me. Lender attorney is only representing lender interest. Having the lender attorney coming through like this does not help the situation as he made everything worse. He is pretty much agreeing with everything seller attorney and without my discussion.

Mike, I will PM you the Broker.

I do agree that with the current heat/situation, buyer agent can sabotage the deal as everything is so in the dark. Is there a way I can directly talk to seller?

Let's say, if I don't sign on the 3/28, then I propose a new date to the seller and sign off. How do I know or can tell if the buyer agent or seller agent present this to the seller? I won't be able to find this out until I take him to court suing for my deposit back.

Thanks,

-Chan-

Chan K. · Answer

@Ned Carey Hi Ned, the new request closing date by seller is 3/28, in which is moved from 3/21 due to fire alarm failure. So, my counter closing date is 4/1 (if seller can collect all the rents for April which  are to be prepaid at closing). If they don't, then move it to 4/8 or whenever enough time for them to collect rent for April.

The buyer agent seems to indirectly confuse for a bit that it is lender attorney who agrees with the closing date (at least that what I understand between emails going back/forth). Lender attorney does not play a role on this. The only thing he cares about is if he has enough time to execute his paperwork from lender end, and his calendar is clear on the day I propose.

Chan K. · Answer

@Russell Brazil Hi Russell, the delay is triggered by seller as he failed the fire alarm test at the last minute (procrastination, I guess), and unable to meet the closing date. It sounds like the seller can refuse to sign off to release the deposits, in which I might need to take him to court. I already paid for the home inspection and the appraisal.

By the way, thank you for all this confirmation. This is how I understand as well.

I don't know why people on my end (buyer agent / lender attorney) works so hard trying to have me sign the extension date request by the seller that I am not happy with. It almost feels like they are not looking after my interest.

Who is negotiating closing date after P&S (Boston)?

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