Refusing to close


Every now and then I have a client ask me if they have to close; this is usually days away from the closing date. There are various reasons why people change their minds late in the game, but the end result is the same: it is very difficult to refuse to close with no consequences unless there is a very good reason to do so. If the other party is ready, willing and able to close, they can start an action to recover any costs related to your refusal, which can include missing out on another transaction that required your transaction, such as if you refuse to buy and they were counting on sale money to buy their new home. If you refuse to close, it can become very costly. In order to avoid these negative consequences, you should be very sure of your decision before signing your agreement.