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How strict are escrow deadlines? It depends on whether buyers or sellers are calling the shots

How strict are escrow deadlines? It depends on whether buyers or sellers are calling the shots

It is always a challenge to add the myriad tasks associated with every real estate sale or purchase to your already busy life.

Your job, grocery shopping, cooking, cleaning, laundry, kids’ homework and sports, parents’ care and support, Bible study, book club, girls night out, men’s basketball and bingo at the local Elks Club. There’s a lot already demanding your time and attention.

That’s why there are a reasonable number of days given in the purchase contract for buyers and sellers to get their part of the deal done to meet the closing date.

The fact that there are consequences for not finding the time to meet the deadlines shifts a little bit depending on which way the market is leaning.

Here’s a look at how meeting the contract deadlines is impacted when it’s a buyer’s market versus when it is a seller’s market.

When it’s a buyer’s market, meeting the contract deadlines become something of a suggestion.

Since most of the deadlines are up to the buyers to meet, you’re very unlikely to exercise your right to cancel the contract on a tardy buyer when you’ve had your house on the market for 124 days and you’ve finally found a qualified buyer who offered you a price you can live with.

You’re more likely to grant the buyers an extension to remove their contingencies, understanding that their attendance at their daughters dance competition and participation in the book club meeting to select next year’s reading list are of the utmost importance.

You may even grant them an extension in the close of escrow to hold the deal together so you can move on to the next chapter in your life.

When it’s a seller’s market, you can rest assured that the contract deadlines for your performance as a buyer will not only be taken seriously, those deadlines will be watched like a ticking alarm clock.

Don’t be surprised when the seller serves you with an official California Association of Realtors Notice to Perform two days before your loan approval contingency is due to be removed, explicitly letting you know that they have the right to cancel the contact should you miss that deadline. The purchase contract allows them to do that.

Do you think for a single minute that the seller won’t exercise her right to cancel your contract if you miss even one deadline you agreed to, knowing that there were seven other well-qualified buyers ready to step in behind you? This might be the time to skip out on book club or bridge to avoid losing the home of your dreams and get your part done. On time.

Leslie Sargent Eskildsen is an Orange County real estate agent. She can be reached at 949-678-3373 or leslie@leslieeskildsen.com. Her website is leslieeskildsen.com.

The Orange County Register – News Headlines : Real Estate News