Breach of purchase agreement and escrow instructions??

[Jacob King]

HI I signed a purchase agreement for a home in Eureka, CA at the end of September 2021 that clearly states in section D, (loans) " this loan shall be at a  fixed rate not to exceed 3.5% ". Now today I received an email from the lender informing me that the interest rate has gone up to 4.75%. No warning.   The contract states that close of escrow shall occur 45 days after acceptance.  This never occurred.  How long is this valid for ?  The contract is between myself and a brokerage firm. Any advice or insight is greatly appreciated

[Darius Ogloza]

It's impossible to give you even an off-the-cuff lay - nonlegal - opinion without a review of the entire contract so I think we are all necessarily shooting in the dark here. However, this transaction was set to close in mid-November and it is now almost March of the next year! What5 happened in all of those intervening months? Nothing? If so, a case can be made that the contract lapsed and is no longer binding or in effect (and, accordingly, you may have a claim for your EMD). Do get legal advice based on a review of the entire agreement of the parties. Good luck.