Under the TREC contract, the closing date is June 30. On June 28, the buyer's lender notifies the closing agent that it needs an additional 5 business days to fund due to a compliance review. The seller has already purchased a new home with a closing date of July 2. What should the parties do?
Correct Answer
D) Negotiate an amendment to extend the closing date, considering both parties' needs and potentially arranging a temporary lease for the seller
The most practical approach is for the parties to negotiate an amendment extending the closing date. If the seller needs to close on their new home, a temporary lease arrangement may help bridge the gap.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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