Real Estate

Seller requesting closing date extension

  • Last Updated:
  • Aug 18th, 2021 5:07 pm
[OP]
Sr. Member
Mar 25, 2005
650 posts
69 upvotes
Bowmanville

Seller requesting closing date extension

Coles note - closing under 10 days away and were informed by our lawyer that our seller is asking for an extension on closing.

Wondering what options we have as a buyer / what has been norm. We had contractors scheduled the day after closing to come in and do Reno's before we moved in.
36 replies
Jr. Member
Oct 26, 2020
111 posts
172 upvotes
The best way would be to give them the extra 10 days, but have the buyer sign that if they don't close by the new closing date, you get to keep their deposit.
Newbie
Jul 23, 2021
35 posts
55 upvotes
just say no? or charge them for the inconvenience? $500/day?
Deal Addict
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Mar 10, 2018
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does it matter?
tg82 wrote: Coles note - closing under 10 days away and were informed by our lawyer that our seller is asking for an extension on closing.

Wondering what options we have as a buyer / what has been norm. We had contractors scheduled the day after closing to come in and do Reno's before we moved in.
ask some money back. Like one months rent equivalent for one month delay.
mh1348 wrote: just say no? or charge them for the inconvenience? $500/day?
might be expensive but can be negotiated.
Tried new coffee and doughnut. Found same old stale thing. expected bill of six bucks but it was 600 million. Big mistake so the guy said don't worry it is on the house. going back to McD.
[OP]
Sr. Member
Mar 25, 2005
650 posts
69 upvotes
Bowmanville
Jamiye wrote: The best way would be to give them the extra 10 days, but have the buyer sign that if they don't close by the new closing date, you get to keep their deposit.

Read it closely - I'm the buyer - the seller is asking for the extension. Buyer, me, has all our affairs in order and ready to close.
Last edited by tg82 on Aug 12th, 2021 6:59 pm, edited 1 time in total.
[OP]
Sr. Member
Mar 25, 2005
650 posts
69 upvotes
Bowmanville
callernamet wrote: ask some money back. Like one months rent equivalent for one month delay.

might be expensive but can be negotiated.
That's what I'm thinking - I also have contractors lined up to do work.
Deal Guru
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Mar 23, 2008
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Edmonton
tg82 wrote: That's what I'm thinking - I also have contractors lined up to do work.
I would talk to your contractors BEFORE making any adjustments. You don’t want to lose your place.

It’s entirely up to you if you want to accept their requested change. Yeah, it’s good to be nice, if you can. But you have a signed contract, and there’s legal obligations on both parts. Them getting their butts out of the house is on them.

C
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Jul 3, 2011
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tg82 wrote: Coles note - closing under 10 days away and were informed by our lawyer that our seller is asking for an extension on closing.

Wondering what options we have as a buyer / what has been norm. We had contractors scheduled the day after closing to come in and do Reno's before we moved in.
What is your living arrangement at present and what did you arrange for on day of closing before receiving this request ?
[OP]
Sr. Member
Mar 25, 2005
650 posts
69 upvotes
Bowmanville
Renter - last month; nothing on day of closing - hardwood delivery day after.
Deal Fanatic
Jul 3, 2011
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tg82 wrote: Renter - last month; nothing on day of closing - hardwood delivery day after.
Have you considered speaking with your lawyer about any or all of:

-- closing as scheduled but with a delayed occupancy with sellers paying rent?
--sellers compensating you for your rent, storage, additional fees due to the delay in closing?

It doesn't seem detrimental to you to delay closing as long as the sellers compensate you accordingly.
[OP]
Sr. Member
Mar 25, 2005
650 posts
69 upvotes
Bowmanville
licenced wrote: Have you considered speaking with your lawyer about any or all of:

-- closing as scheduled but with a delayed occupancy with sellers paying rent?
--sellers compensating you for your rent, storage, additional fees due to the delay in closing?

It doesn't seem detrimental to you to delay closing as long as the sellers compensate you accordingly.
Our lawyer is the one who brought it to our attention - I used this post as a way of gather info and opinions from others as well. We have a follow up meeting with our lawyer already scheduled.
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Mar 30, 2017
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GVA
licenced wrote: Have you considered speaking with your lawyer about any or all of:

-- closing as scheduled but with a delayed occupancy with sellers paying rent?
--sellers compensating you for your rent, storage, additional fees due to the delay in closing?

It doesn't seem detrimental to you to delay closing as long as the sellers compensate you accordingly.
i would not want seller to rent it back for 10 days. who know if they want to turn it into 6 months of squatting? with wave#4 coming, if there is another eviction ban again OP will get F.

I would definitely ask for compensation for delay.
profit on 6/23/2021 = 117.61% since 11/10/2020 to be exact😎
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seatiger wrote: i would not want seller to rent it back for 10 days. who know if they want to turn it into 6 months of squatting? with wave#4 coming, if there is another eviction ban again OP will get F.

I would definitely ask for compensation for delay.
The real estate lawyers should be able to draft an agreement that avoids RTA coverage. It’s not uncommon to need to do that.

C
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Jul 3, 2011
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seatiger wrote: i would not want seller to rent it back for 10 days. who know if they want to turn it into 6 months of squatting? with wave#4 coming, if there is another eviction ban again OP will get F.

I would definitely ask for compensation for delay.
It's not the same type of rental. Their lawyer's clause is likely to state it is not subject to the RTA and if they're worth their salt at all, will also include a very large fee for every day they overstay.

Trust in your lawyer to do what is best for you and not for the seller.
Last edited by licenced on Aug 13th, 2021 4:12 pm, edited 1 time in total.
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CNeufeld wrote: The real estate lawyers should be able to draft an agreement that avoids RTA coverage. It’s not uncommon to need to do that.

C
well, if they intend to squat, do you think they care about agreement? Once they got money, OP is out of luck.
how can OP enforce it? Yes OP can kick them out eventually but after how long of jumping hoops after hoops?
ON police doesn't care about squatting, and tell owners to go through RTB even for airbnb squatters lol
Good luck getting a hearing in timely manner, RTB or court.
profit on 6/23/2021 = 117.61% since 11/10/2020 to be exact😎
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seatiger wrote: well, if they intend to squat, do you think they care about agreement? Once they got money, OP is out of luck.
how can OP enforce it? Yes OP can kick them out eventually but after how long of jumping hoops after hoops?
ON police doesn't care about squatting, and tell owners to go through RTB even for airbnb squatters lol
Good luck getting a hearing in timely manner, RTB or court.
It's called trespass and subject to immediate removal by the police.
Deal Expert
Feb 29, 2008
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Tarrana & The Ri…
Wonder what the issue is. Maybe they bought new and the house is delayed. I went through something similar and didn’t even bother asking for an extension for the simple fact that it was pretty short notice and my buyer was an asshole. Ended up finding short term accommodation.

I’d speak with your lawyer and draft something up to extend another 2 weeks or more but charge them for and maybe some other language that would penalize them if they still can’t close on the new date. I doubt they go for forfeiting the deposit.

Would be good to know why they’re delaying though. Sometimes shit happens.
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seatiger wrote: well, if they intend to squat, do you think they care about agreement? Once they got money, OP is out of luck.
how can OP enforce it? Yes OP can kick them out eventually but after how long of jumping hoops after hoops?
ON police doesn't care about squatting, and tell owners to go through RTB even for airbnb squatters lol
Good luck getting a hearing in timely manner, RTB or court.
Not only is the seller trespassing at that point (rather than needing to be evicted by the LTB), but I suspect the buyer's lawyer will likely have kept a portion of the funds that would have been sent to the seller in escrow, to be released when the seller moves their butt out of the property. That deposit would be large enough to make the seller's foolish to forgo by missing their move-out date. Besides forfeiting that deposit, there would also be verbage on all the buyer's expenses being covered for any delays. In other words, the seller doesn't get all their money up front, and there would be a legal contract outside the LTB to protect the buyer. Small Claims or Superior Court is not nearly so friendly to sob stories over a broken contract as the LTB tribunal is, and the sellers would be financially punished for a foolish decision to squat.

C
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Mar 30, 2017
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GVA
licenced wrote: It's called trespass and subject to immediate removal by the police.
ON police disagreeing you:

https://www.chch.com/air-bnb-guests-wont-leave-or-pay/
airbnb-guests-refuse-leave-2475086/


We both disagree with ON police, but thats their point of view: once that person has even just 1 day of residency, they treat it as non payment of rent. it is not trespassing anymore. And as the case is not criminal, they wont do anything.

from comment:
John Brown July 2, 2021, 8:53 am at 8:53 am
In toronto I lost my apartment to a so called friend, i let him stay in my bachelor to recover from hospitalization. In Toronto, their is a municiple bylaw where he claimed squatters rights which shouldn’t apply to a rental. But Toronto Police told me that means they have no authority in the matter and the only way to remove him was by the sheriff’s department which was backlogged 10 months
The ON laws/enforcement are deteriorating fast. I don't think there is any tool to meaningfully reduce risk of squatters.
Just avoid renting at all in ON, short term or not.
For OP, much easier to just seek compensation for closing delay.
profit on 6/23/2021 = 117.61% since 11/10/2020 to be exact😎
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That is tresspassing. It does not fall under the RTA hence the police erred, every single legal person asked said no.

Stop and think about it for a bit and the idiocy of the police inaction. But one idiot move does not negate the law of tresspass.

It would mean that no one who was once paying rent for any reason is a tresspasser!
seatiger wrote: ON police disagreeing you:

https://www.chch.com/air-bnb-guests-wont-leave-or-pay/
airbnb-guests-refuse-leave-2475086/


We both disagree with ON police, but thats their point of view: once that person has even just 1 day of residency, they treat it as non payment of rent. it is not trespassing anymore. And as the case is not criminal, they wont do anything.

from comment:


The ON laws/enforcement are deteriorating fast. I don't think there is any tool to meaningfully reduce risk of squatters.
Just avoid renting at all in ON, short term or not.
For OP, much easier to just seek compensation for closing delay.

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