In other words, if time is not made of the essence by the addendum granting the extension, then it isn’t and neither party can sue to enforce the new date.Īs consideration for granting the extension, it is not unreasonable to ask for compensation from the buyer for actual costs incurred by you as a result of agreeing to the extension additional mortgage loan interest is an obvious example. If time is not made of the essence again, the situation may arise that the “new” completion date is not enforceable and either party may set the completion date as long as reasonable notice is given. When an extension of the complete date is agreed to, care should be taken to maintain time as being of the essence. i.e., should you grant an extension to complete, should you consider closing the sale in escrow, or do you have information that may assist the other party in completing the transaction. If you, or your solicitor, suspect that the deal is collapsing because of challenges the buyer is facing in completing the transaction, you should review with your solicitor, and perhaps your realtor, whether or not there is a course of action that could facilitate completion of the transaction. Why is the buyer resisting completion, i.e., is the buyer unable to obtain financing after all is the purchase price above market value (as the result of a falling market) or has the Buyer learned something about the property that caused him to change his mind. Will you suffer losses as a result of not completing the sale?.Do you want to complete the transaction?.What will you do? Your strategy may depend on the answer to a number of questions, including: So you’ve entered into a Contract of Purchase and Sale to sell your property and now the purchaser doesn’t want to complete the transaction.
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