Did you have a written closing date before this that made you think it would be late January? Or anything that it was originally late January?

Sorry that you are in this predicament. Usually there would be interest money that carries over each month for the builder to pay. Also because it is the end of the year, perhaps tax incentives to get the house closed this year is the motive.
You should have had some idea of the range of closing dates a month ago. Your mortgage company or closing company would need to know the dates to be sure that the money is available to you for closing.
All that being said, if you have a family attorney who can represent you, you can do a power of attorney for the purpose of signing closing documents. Then you don't have to worry and can go on your trip.Although I would think you would want a final walk through of the house before closing.
You have to be very proactive at this point to have a plan to close. It sounds as if this builder may be pressed for reasons unknown to you to get this done this month. It is too bad that they can't work with you, but it is what it is.

Additional comment - We paid $20K deposit in March plus $600 appraisal fee end of November and total home purchase price ~525K with all the upgrades etc.

@cpartist - No it was verbal. Home construction started in July sometime and I was told expect to have it done in about 6-7 months but no firm date until I was notified few days ago plus we had Hurricane Irma that prevented any work for solid 2 weeks so didn't think they could complete in December.

@sunnydrew - we want to be there in person for closing. it's our home plus we have put our heart and money into this.

We have closed on property from another state. You can either give power of attorney to someone you trust for purposes of closing and let them do it for you. We opted to do the closing by mail, had fed-ex overnight stuff back and forth.

But in this instance, I would retain council and power of attorney. That way someone is there for a final walk through and can sign for you.. Then you can enjoy your vacation.

Would leave a bad taste in my mouth with the builder either way.

Sunnydrew has the best answer. Contact a trusted attorney and give POA for signing closing documents. If you don't like that - then pay the $3500, schedule closing for when you return, and move on. Personally, the POA route is the best option (they can email the closing disclosures to you to check over before your POA signs) as it's literally just sitting in a room and signing a billion papers, then leaving. It's not like they roll out the red carpets and you'll be missing some grand celebration. It feels good to be done, but not $3500 good, IMO.

@kynsmama - Mail away is an option for us but since we are out of the country and travelling, we don't quite have a forwarding address. We really prefer to close in- person.

@ htwo82 - we can pay $3500 fine but builder is threating to put us in default and whereby, we will lose our deposit and our home.

Am not sure if this is just them posturing or infact, will go thro' it.

My request(via email) to move the date to 01/07 with the $3500 penalty was turned down.

Short of getting an attorney to send the letter to change closing date - Again, not sure how that would be different than me sending them a certified letter.

Has anyone successfully changed their closing date?

The only recourse for us would be, if the home inspector finds any MAJOR issue(which we don't think there would be) and that inspection won't occur until 12/26 and even then, what's preventing builder to force us to close ??

I have purchased several homes while I was out of the country. It really isn't a big deal, just have an attorney do the power of attorney. You will need a walk-through so you should arrange to have a home inspector or someone else go through the home. I would try to arrange a walk-through before you leave and then pay your attorney to close it for you.

I don't know the price of the home but I am very concerned about $500 per day of liquidated damages. High liquidated damages is a tactic that is used by tract builders to get people to close even when the house is substandard. I seriously doubt that the clause is even enforceable, they simply don't want you to delay closing while they finish things that you identified at the walk-through.

I believe it is time for you to seek some legal advice. This has all the warning bells going off for me, and it is time for your ounce of prevention.

--------------------------------------------------

Your attorney can challenge the liquidated damages clause. I don't know the details of your contract, so will post the UCC stance on liquidated damages, the UCC may not apply but the same idea is pervasive in U.S. law.

Damages for breach by either party may be liquidated in the agreement but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy. A term fixing unreasonably large liquidated damages is void as a penalty.

Whether $15,000 per month is reasonable or not depends on the amount of the home, however, that seems pretty high unless the house is approaching $2 million.

----------------

ETA: I started writing this before you posted the price... There is no way that $500 per day of liquidated damages should be enforceable on a $525,000 house.

Again, in light of your new posts, it is time for an attorney. You should have spent the money on an attorney before you signed the contract. While not picking on you specifically, this is a common theme around here, you signed an obligation for $525,000 and paid $20,000 without bothering to spend the $500 on an attorney who might have helped you protect the $20,000.

The only recourse for us would be, if the home inspector finds any MAJOR issue(which we don't think there would be) and that inspection won't occur until 12/26 and even then, what's preventing builder to force us to close ??

Ding! Ding! Ding! We have a winner! This is the exact reason the clause exists, they are going to make you close so long as the house has a certificate of occupancy and unless you can get that voided (which you will not) then they are going to extort you into closing with the huge liquidated damages.

ETA: In this case, I believe your walk-through is completely superfluous. It is very likely that any mistake found in the walk-through is going to cost less than the liquidated damages. So they are going to make you close, they might agree to fix some things before closing and others after closing, but they will make you close.

This just makes closing from afar more viable.

You need a real estate attorney NOW. Bry is right. Warning bells are going off.

@bry911 - I understand but how exactly would have an attorney helped if we hired him/her when we signed the initial contract? I don't think they could have foreseen this issue and even if they did, the contract is always geared towards the builder(as per my understanding) and I don't think they will make any addendum based on attorney feedback.

Attorney may have made us aware of contract language but we will still be in the same predicament today.

I understand but how exactly would have an attorney helped if we hired him/her when we signed the initial contract

Forewarned is forearmed. For example, I have a friend who is the CFO of a large builder and they have this exact same clause in their contract. It never holds up in court, and every attorney in the area knows it. So he might tell you to ignore the liquidated damages clause.

He could also help inform you of recent lawsuits against the builder that serve as things you need to look out for.

By engaging an attorney before you sign the contract you create an obligation from that attorney for his advice to be correct, so you essentially gain an advocate.

Attorney may have made us aware of contract language but we will still be in the same predicament today.

Not necessarily... This isn't my area but I am familiar with liquidated damages, were I your attorney I would advise you to send an email essentially asking the builder permission to go on vacation (in advance). Every builder would say yes, of course, and by doing so carves out an exemption to the closing requirement.

Thanks all for the responses. Am still bummed that, they won't approve us paying fine and moving the closing date to next year. Makes me think that their year-end quota or bonuses would be impacted and have higher importance and hence, their disdain.

I understand but how exactly would have an attorney helped if we hired him/her when we signed the initial contract? I don't think they could have foreseen this issue and even if they did, the contract is always geared towards the builder(as per my understanding) and I don't think they will make any addendum based on attorney feedback.

Attorney may have made us aware of contract language but we will still be in the same predicament today.

A RE attorney would have negotiated with you to change the language that is detrimental to you. They would have made sure you don't sign until you understood everything in the agreement too.

My DH is a lawyer. However he is not a RE attorney so the first thing we did when we got the contract from our builder was hire a local RE attorney. And yes, we renegotiated several of the clauses in the contract.

Now you need an attorney to look at any loopholes and to make sure what you signed is completely legit. Meaning let an attorney find an out to your situation, but make sure it's a RE attorney.

Spend the money for an attorney. Don't assume you are behind the 8 ball without talking to one. They are strong arming you because they think you don't have an attorney

One last thing... This should come out when you talk to an attorney, but if your original expectation of a late January was based on a communication from a representative of the builder you might have a decent promissory estoppel claim (aka detrimental reliance). This is a fairly weak legal claim so in many circumstances wouldn't be worth the trouble, however, this sounds like a perfect use of it. If you relied on an email or other written communication (technically even verbal would work but good luck proving that one) when establishing the idea that it was OK to leave town during December then you might be able to strong-arm the builder right back.

Attorney ASAP. You can be nice, but have someone that knows the law at your back. The money the attorney cost will be a drop in the bucket in 30 years. Yes, they can close for you. No problem at all. Enjoy your holiday and your new home.

It sound like to me that the builder needs the money to pay someone before the end of the year. That's fine, but you shouldn't suffer. Get an attorney and an inspector.

I've signed paperwork for a closing that took place two week later. If that is an option, with a power of attorney, go with it! also, get a fax number where you are staying for last minute signatures. Above all, make certain you retain a lawyer anyway to review this. You don't want any more surprises!

Get a RE attorney. You have about 15,000 reasons why.

Thanks All. Anyone recommend a good RE attorney in the Tampa, FL area ?

I would say that the customer service of this builder is not very good. They should have been communicating a time line with you all along. Usually once the dry wall goes up, the builder should be able to predict an approximate finish and closing. Do they have a certificate of occupancy already or are they still in there working. Have you been in the house during construction?
I would expect you to want to be there for closing, not because you have your heart in it, but because it a business deal. They have a contract which allows them a certain time to complete the build, but when they say close, they mean it.
You should talk to a Realtor or lawyer about representing you for an hourly rate at closing. Read all the documents before signing.
Good luck and don't let this mar your new home zeal.

Having worked for a national builder, I will say that as great as my company was to work for, it is true that contacts are written in the builder's favor to be sure.
I had a (difficult) buyer that wanted to postpone closing and I told him that I would put out a for sale sign at his new house and he would forfeit his deposit if he did not show up. He showed up.
Now clearly this is a completely different situation, and you need to seek help.
It is a red flag to me that they would have your walk through 3 days before closing, which means that they would not have time if something is really an issue, but they would say "we will do after, but just close first". When was the last time you were in the house? The other thing is that usually these little fixes needed are not justification for NOT closing as explained by other posters here.
I would try to call the company president and nicely ask if you could reach some kind of agreement and be sure to have the date change put in writing that both parties agree. THAT is why you need an attorney or realtor to help you.

P.S. The builder does not sell the mortgage, the mortgage company would be one doing that. Did you get incentives for using their recommended finance company? Their title company for closing?

Talk to a couple of realtors. They know the real estate attorneys and can give you a referral.

Another thing is, if you agree to their fine or fee, you MUST get it in writing that buyer and seller agree to settlement on 1/7/18 or whenever and that the fee of $xx.00 will be added to final price of the house ( mortgaged) or paid in cash at closing ( cash due at settlement). Again, be aware of your options here.

Who is the builder? If you don't want to say publicly, message me. I'm 50 minutes south of you.

I am an attorney, though not licensed in Florida and a corporate attorney, not real estate. But I can point out, re the "$500 fine," that the language that you quoted from your contract applies when the SELLER extends the closing date, which the Seller (Builder) has refused to do.

I agree with most of the comments, the chief being to contact a lawyer.

Likely, the builder has some economic tax-based reason for needing to close this deal in 2017, and that's why it's sticking to the 12/29 closing date.

I agree to get a RE attorney right away.

But doesn't the closing date have to be set by both parties agreeing to it? And if "Buyer does not have the right to extend, delay or postpone the Closing Date." wouldn't there have to be a date set FIRST before it can be extended, delayed or postponed? I think someone is interpreting the English language with a little twist.

@ Mark - the date is set for 12/29 as of 12/08(the day we were notified). It wasn't set before. The builder is using contract language to deny extension even though we have a genuine constraint.

Seems to me that "the closing date" should have been listing in the original contract to refer back to that. I'm assuming there is no closing date in the original contract listed? Has the final appraisal been ordered? How close to before the 29th can you close?

Is there anything in the contract that tells how the closing date is determined?

It may be to your benefit to get your inspection report done, and close in December. in our county in Florida, you will need to be in your home on January 1 to qualify for homestead exemption. that may mean more in the long run than your temporary inconvenience. we have closed on a home while out of the country. it's not that hard to set it up

that said, I'd personally like to see the home substantially complete before I left the area.

Oliviag, you have 2 calendar years from the sale of any previous home for the homestead AND Save Our Homes exemptions.

the op hadn't said if they are FL residents. yet. that's why I said "may"

and, you are correct. I should have elaborated. sorry .

Is there anything in the contract that tells how the closing date is determined?

In many of these contracts you have to assign that determination to the builder.

However, in Florida you have to own and occupy the property by 12/31/17 in order to claim homestead on that property for 2018. If you close in Jan then you can't claim homestead for 2018 - you can only claim 2019 forward. Having said that - the others are right: get an attorney now.

@Mark - Below is contract language for closing.

Closing Date: Unless earlier terminated or extended by Seller as provided herein, the “Closing Date” for this transaction shall occur following substantial completion of the Home on a date to be specified in a notice to be provided by Seller to Buyer.

Seller will give Buyer at least five (5) days prior notice of the Closing Date, as well as the time and place for Closing once a firm date is established. BECAUSE OF THE

UNPREDICTABLE NATURE OF HOME CONSTRUCTION, IT IS NOT POSSIBLE TO ESTIMATE THE EXACT CLOSING DATE WITH ACCURACY.

BUYER ACCEPTS THE UNCERTAINTY OF THE ESTIMATED CLOSING DATE AND WAIVES ALL CLAIMS AGAINST SELLER, ITS AGENTS, EMPLOYEES AND CONTRACTORS ARISING IN CONNECTION THEREWITH.

Also, Seller reserves the right to postpone the Closing Date after initial notice is given with one (1) day notice of the firm Closing Date.

@oliviag55 - My understanding is that if final closing inspection occurred in Jan and we close in Jan, we won't be assessed property tax on home but only on land value so homestead exemption is moot. I checked with county on this as well.

Yes your waiting till January to close means you only pay on land value. However now closing before end of year, you're taxes are based on house and land for all of 2017

Curious as to what ever happened... I hope you were able to enjoy your holiday

Update:

We close today. We lost 5K since the builder dinged us that amount as penalty plus we lost on homestead eligibility as builder got the certificate of occupancy on 12/26(they could have delayed it until 01/02) so we will be paying full property tax for 2018 and that's another 1k additional out of pocket.

Overall, we are excited to be moving into our new home in next 2-3 weeks but we certainly won't be recommeding this builder to any of our friends.

Ouch. The builder sounds like a real a$$ hole. I agree with cpartist, shame the heck out of him.

I am buying a house and was informed the settlement date was Feb 24th. I paid $1,600 for rate lock. Later, builder informs me that due to supply chain issues, get get cabinets in therefore, no closing on feb.24th. Builder says then got a new supplier and would have the cabinets in for settlement on arch 11th now, they are saying closing on March 31st and lender says requires additional $5,000 plus get current rate which I believe is unfair that I have to not only pay more money for rate lock extension but have my rate go from upper 2% rate to low 4%'s for no fUlt of mine! Any feedback?

What does the contract state about closing and issues with supply chain? Supply chain issues are affecting everyone on dam near every project.