The only reference to missed deadlines is in the financing section where it says that if the Buyer fails to obtain a loan within 70 days, the agreement is null and void and deposit shall be returned to Buyer. Its been 100 days and still only a conditional approval from the mortgage broker, not the bank. (No appraisal yet)
There is a “Time is of the essence” clause as well.
There is an “Arbitration of disputes” clause that basically says Buyer and Seller agree to the rules of the American Arbitration Association and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof and that we give up our rights to have the dispute litigated in court or jury trial. We both initialed this section.
California’s real estate purchase agreements have certain time frames with which something is suppose to happen. For instance lets say it gives a person 20 days to do a due diligence inspection, or 20 days to get funding in place or any other number of days restrictions.
What happens if these time frames are not kept. For instance what are the Sellers options if the Buyer fails to meet one or more of the deadlines. Can the Seller back out?? If he chooses to back out and cancel escrow, can the Buyer file a Les Pendens action against the property?? and force the sale??
The standard purchase agreement used in So. Calif. is the CAR form. It sets forth the rights of the buyer and seller when a particular deadline is not met.
IF the buyer is in default, it probably would not be a wise move to file a lis pendens and a lawsuit. But more facts are needed to give an informed opinion.
Note also that the standard CAR contract requires mediation before a suit is filed unless that provision has been stricken from the contract. Failure to seek mediation (where mediation has not been stricken from the contract) before filing suit may result in that party being unable to collect legal fees if successful in the arbitration and/or litigation. Failure to seek arbitration may result in the other party filing a petition to compel arbitration resulting in a stay of at least a portion of the litigation until arbitation has been held.
Buyer missed several deadlines and heretofore refused to sign any addendum’s addressing the missed deadlines.
Now he is wanting to extend the deadlines by 30 days.
I have another buyer with a better offer.
Original buyer is threatening to file a lis pendens and lawsuit should I not agree to extend the deadlines.
I imagine getting before a judge would take longer than 30 days and would probably be rather expensive and time consuming. So… I guess his bluff worked unless I am missing something.
I hope you take this as constructive but you still have not indicated what is in the purchase agreement regarding the rights of the buyer and seller with respect to missed deadlines. You also did not indicate whether your purchase agreement has a mediation clause. Please read the contract, find a real estate lawyer in your area who is familiar with transactions and buy an hour or two of his time. The threat may be just a bluff but unless you are willing to spend some money for good advice, you are not properly protecing your rights.