Closing Day Chaos? Use This Form to Take Control (and Keep Your Sanity)
Mar 30, 2024The Ticking Clock: Why Contract Timelines Matter in Real Estate:
- Realtor Pat Kapowich tackles a common problem in home sales: sellers failing to meet contract conditions by the agreed-upon deadlines.
- He explains how buyers can navigate this challenging situation using the California Association of Realtors' Extension of Time Amendment form and why holding sellers accountable is crucial.
When we wrote our purchase offer agreement, we added two conditions:
- The sellers are to remove all outbuildings within 10 days of acceptance.
- The sellers agree to remove all auto parts and debris from the grounds within 12 days of acceptance.
On Day 14, our buyer’s agent stopped by the property to confirm conditions had been met. This was an unofficial precursor visit to our official walk-through on Day 15.
The house is located on a corner. The double-wide side-fence gate for car storage was wide open. The backyard and one side yard were visible to our buyer’s agent. The yards were still in disarray. There was a lone worker with a wheelbarrow. There is a dumpster located by the open gate. According to our buyer’s agent, this “worker” is “slowly loading” the dumpster with debris.
The seller’s agent said not to worry. The seller’s agent told our buyer’s agent we can still close escrow on Friday. The seller’s agent is suggesting we take ownership on Friday, and the seller’s workers will arrive Sunday. It would be funny if not so alarming.
What do others do in this situation?
Answer: The California Association of Realtors has a form called the Extension of Time Amendment (C.A.R. Form E.T.A.). Homebuyers in your predicament extend the close of escrow (change of ownership) date. It is a prudent tactic.
When the seller’s agent does not extend deadlines for conditions, the buyer’s agent must.
C.A.R. Form E.T.A. the multipurpose form for function:
- Paragraph 1. Extension of Escrow: The schedule of Close of Escrow is extended to _____________(Date).
Paragraph 3. Other Extension(s). The time for ______________________________________________________is/are extended to_____________(Date).
Homebuyers who are put in your position do not ask for extensions. They demand them.
For Housing Market Data in your area, visit my webpage for trends here. Do you have questions about home buying or selling? Full-service Realtor Pat Kapowich is a Certified Trust and Probate Specialist, Certified Real Estate Brokerage Manager and career-long consumer protection advocate.
He is based in his hometown of Sunnyvale, California.
Office: 408-245-7700; Broker# 00979413 [email protected]
