Hello and welcome. This is Nolan with Discover NC Homes and Nolan’s news. Today I want to talk about a very important topic in our contract. This element of the contract has been in place for, I don’t even know, probably four or five years now, but it’s both buyer and seller that it applies to.
On page 11 under item number 12 it states that either the buyer or the seller has an extra 14 days, as long as they’re moving towards closing, in which to close the property. So again, either buyer or seller has the right to exercise this clause. I’m going to read it to you. It’s a little bit boring, but I think it’s a very important topic here.
So it says, item number 12: “Delay in settlement/closing – Absent agreement to the contrary in this contract or any subsequent modification thereto, if a party is unable to complete settlement by the settlement date, but intends to complete the transaction and is acting in good faith and with reasonable diligence to proceed to settlement (the delaying party) and if the other party is ready, willing, and able to complete settlement on the settlement date (the non delaying party), then the delaying party shall give as much notice as possible to the non delaying party and closing attorney and shall be entitled to a delay in settlement. If the parties fail to complete a settlement and closing within 14 days – that’s the key part there guys: 14 days of the settlement date! – or otherwise extended, then that party is in breach of the contract.
Now I didn’t read it verbatim towards the end, but essentially again, what that does is if you’re a buyer and your loan isn’t in place and you need an extra six or seven days, but you’re working towards that closing, you have the right to go ahead and close out that property.
If you’re a seller and you’re buying another home and you can’t close on that home or the seller of that home can’t get out for another 10 days past your closing date on your house, you have the right to stay there up to 14 days before you’re in breach.
It’s not a topic that we really bring out, but it has come up recently so I think it’s a very important term to go by.
Just a few things with this: always give the other party, if you can, as much notice as possible. No one likes to schedule a mover or be out and then have to have plans rearranged because they didn’t know about it. But that 14 days is in there for the seller or the buyer in our North Carolina contracts.
If you have any questions, please let me know. Thank you for having us. We’ll see you soon.
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About Nolan Formalarie
Nolan Formalarie has been in the North Carolina Real Estate Industry for over 8 years and enjoys every minute of it. He is involved in every aspect of the industry including selling and purchasing residential property, home watch services, property management, association management and construction.
