financing contingency

[askwho]

I am a home buyer in Maryland. The financing contingency expired on 21 days from the date of the contract but the closing date is 26 days from the date of contract. I obtained the loan commitment letter on 23 days from the date of contract but we cannot close on time because lender cannot provide all documents. Sellers and buyers cannot reach an agreement on extending closing date. My agent suggested me to declare the contract null on the closing date based on the reason buyers are no longer qualified for the loan. In this case, can I get the deposit back?

[hr for me]

I would suggest speaking with a local attorney who knows about real estate law. And what happens once a contingency expires. It can mean one of two things -- (1) that the contingency no longer exists and if the buyer backs out for whatever reason, they loose their earnest money or (2) that since the contingency wasn't fulfilled at the 21st day that the contract is now null and void. Part of it might also depend on timing -- Are you past the 21 days?

[askwho]

Thanks for your reply. Yes, the commitment letter was issued after the contingency expired. At first, I thought everything was fine. Just the day before closing, the lender told me to sign the commitment letter and I had never known I need to sign a commitment letter. The lender also told everyone that closing had to be delayed. That is where all this trouble begins.

I would suggest speaking with a local attorney who knows about real estate law. And what happens once a contingency expires. It can mean one of two things -- (1) that the contingency no longer exists and if the buyer backs out for whatever reason, they loose their earnest money or (2) that since the contingency wasn't fulfilled at the 21st day that the contract is now null and void. Part of it might also depend on timing -- Are you past the 21 days?

[Alice Dodd]

You should have the contract reviewed by an attorney. Contracts are interpreted through your state's laws, and we can't tell review it for you and tell you what will happen. Your local bar association can refer you to an attorney who works in this area. Many will give a free 30 minute consultation.

[dkstaub]

You definitely need a Maryland real estate lawyer's advice based on the specific wording of your contract. Subtle differences in the wording of a contingency clause can entirely change the interpretation, and the consequences can be serious.