Closing/ Settlement Date extension

[Jaugie]

Hey all, wanting to get some advice from other people.

Our closing date for an AUL contract is set for 1/10 and the settlement date is 1/15.

Last week the title company was still waiting to receive the sellers closing documents. After following up again today, they said they are working with the sellers to confirm the point activity statement. They said they should be able to close by 1/15 but may request an extension from me if needed.

Would you grant an extension?

In reality I see other contracts that I would bid on for a better price as I seem to have offered higher than the average AUL price in Dec.

Would gladly receive thoughts and suggestions.

 

[Sandisw]

Hey all, wanting to get some advice from other people.

Our closing date for an AUL contract is set for 1/10 and the settlement date is 1/15.

Last week the title company was still waiting to receive the sellers closing documents. After following up again today, they said they are working with the sellers to confirm the point activity statement. They said they should be able to close by 1/15 but may request an extension from me if needed.

Would you grant an extension?

In reality I see other contracts that I would bid on for a better price as I seem to have offered higher than the average AUL price in Dec.

Would gladly receive thoughts and suggestions.

If you feel that you want to walk away and find a better price and don’t mind starting over, then tell them that you don’t plan to extend.

It may motivate the seller to get moving. It did when I was buying and I was willing to walk away and lose my deposit.

 

[Brian Noble]

There is value in your time and energy. If the price difference is not astronomical, I would not lose sleep over it, and would instead grant a (short and reasonable) extension.

But that's just me.

 

[disneylandtour]

Like a couple weeks is fine. I had one bad experience with a long extension. I would not go that route again. I could be wrong, but don't all AUL contracts require a notary? It may be something as simple as that. Also, if the sellers don't meet the contractual deadline you "should" get your deposit back, as the sellers have broken the contract.

If you wanted to play a little hardball, you could offer to give the sellers an extension in return from them covering the 2025 MFs.

 

[MICKIMINI]

I have done this in the past several times. Close on time or we back out. All those contracts miraculously closed on time!

 

[Jaugie]

There is value in your time and energy. If the price difference is not astronomical, I would not lose sleep over it, and would instead grant a (short and reasonable) extension.

But that's just me.

With the sudden surge of AUL contracts and the data from average resale prices I am guessing I could get a slightly larger contract at about $10 less/ point now.

I bid on the resale contract while at AUL and $100/point is a fantastic deal in comparison to the direct pricing

Like a couple weeks is fine. I had one bad experience with a long extension. I would not go that route again. I could be wrong, but don't all AUL contracts require a notary? It may be something as simple as that. Also, if the sellers don't meet the contractual deadline you "should" get your deposit back, as the sellers have broken the contract.

If you wanted to play a little hardball, you could offer to give the sellers an extension in return from them covering the 2025 MFs.

We did have to do a notary for AUL. We notarized and returned our docs within 3 days of receiving them. We also sent in the wire transfer at that time. That was now almost 2 months ago and I am slightly annoyed that the seller has waited till the very end to make movements. It almost felt like the seller was wanting to back out of the deal by dragging their feet.

 

[MICKIMINI]

The entire situation is unfortunate. There are many reasons sellers don't send their docs in on time including divorce, multiple owners in different states, etc.

If you do back out and put in an offer on a new contract, I suggest holding your final payment UNTIL the seller has sent in their closing docs. Resist the closing company insisting you send the money. In fact, let them know when you agree to purchase this is how you will handle closing. Have them put it in writing. Good lulck!

 

[disneylandtour]

The entire situation is unfortunate. There are many reasons sellers don't send their docs in on time including divorce, multiple owners in different states, etc.

If you do back out and put in an offer on a new contract, I suggest holding your final payment UNTIL the seller has sent in their closing docs. Resist the closing company insisting you send the money. In fact, let them know when you agree to purchase this is how you will handle closing. Have them put it in writing. Good lulck!

Honestly, having had a couple contracts fall apart, I didn't mind it so much. If you put down $7,500 as a deposit on an airline card and then the whole thing goes south, you get the money back by check through DHL or Fed Ex or UPS overnight. And I made a ton of frequent flyer miles on the deposit that I didn't have to give back because the money wasn't returned to the card. If it gets to the point of the wire transfer, that's a little different.

 

[MICKIMINI]

Honestly, having had a couple contracts fall apart, I didn't mind it so much. If you put down $7,500 as a deposit on an airline card and then the whole thing goes south, you get the money back by check through DHL or Fed Ex or UPS overnight. And I made a ton of frequent flyer miles on the deposit that I didn't have to give back because the money wasn't returned to the card. If it gets to the point of the wire transfer, that's a little different.

Now, that is a way to collect airline points!!!

 

[Jaugie]

The entire situation is unfortunate. There are many reasons sellers don't send their docs in on time including divorce, multiple owners in different states, etc.

If you do back out and put in an offer on a new contract, I suggest holding your final payment UNTIL the seller has sent in their closing docs. Resist the closing company insisting you send the money. In fact, let them know when you agree to purchase this is how you will handle closing. Have them put it in writing. Good lulck!

I have learned a lot from this. We had purchased 3 direct contracts and sold one of them resale. This is our first purchase of a resale contract.

Once the title company confirmed the closing date of 1/10 I stated I will only extend the closing date with a renegotiation of the price. It seems like they are now pushing to get this done.

Sadly, I know the seller was unresponsive for almost the full month of December while we returned out closing docs with the wire transfer on 11/17.

If this does fall through I will be transparent on my decision to hold off the wire transfer until the sellers documents get returned.

Honestly, having had a couple contracts fall apart, I didn't mind it so much. If you put down $7,500 as a deposit on an airline card and then the whole thing goes south, you get the money back by check through DHL or Fed Ex or UPS overnight. And I made a ton of frequent flyer miles on the deposit that I didn't have to give back because the money wasn't returned to the card. If it gets to the point of the wire transfer, that's a little different.

This unintended ripple of extra miles will be a welcome consolation prize for a contract falling through. Bring on the miles for the 10th anniversary trip to Bora Bora