Financial docs not delivered, extend or cancel?

Question

Hello all,

I'm under contract to buy a duplex in St. Louis, it would be my first rental property and the contract stated the seller had until Saturday the 20th to get me the relevant financials, rent rolls, leases, etc.. Well that time has come and gone and no documents have been received. My question is should I cancel the contract or continue with the process? I haven't done the home inspection yet, as we were waiting for some paperwork on the eviction being carried out in one of the units, so the only money I've spent is the EMD and a lot of time. Thoughts? If they can't product the documents should I be worried they're trying to cover up something, or maybe they're just lazy with records?

Donald S. · Answer

Thanks everyone for the responses. I got an accepted offer on a better property and decided to cancel the contract on this property. With how badly the owner and PM are at managing the place it may still be on the market when I get my finances back up to buy another property. But here's to hoping this better deal works out instead!

David Ounanian · Answer

Hey @Donald Shaver let them know they have breached the contract.  If you're willing to give them an extension make sure you amend the contract and put the new date in writing.  Let them know that it may delay closing and if so amend that date as well.  I wouldn't move forward with anything on your side such as inspections, appraisals, title work etc. until you are satisfied.

Jay Helms · Answer

@Donald Shaver if this is a mom/pop owner don’t be surprised if they don’t have any of this readily available, especially if it’s someone, older, that isn’t technology savvy. Work with your realtor to come up with the best course.

Brian Adzadi · Answer

@Donald Shaver

Yea, I would be suspicious. Just both scenarios that you stated in the last statement don't sound promising about these sellers. If they are trying to cover something up, that means they are unscrupulous. If they just lazy then what other things are they lazy with (repairs, rent collection)?

Obviously these people are not motivated and unprofessional, I would walk out on this deal. I another factor is the eviction, I would want to make sure the eviction has been fully completed before buying the property. You don't want to be evicting someone when you JUST bought the place.