Rate lock extension fees. Who pays it?

Unless the contract of sale specifically provides for reimbursement of rate lock extension fees to the buyer (which is usually not the case), or provides for a time is of the essence closing, the seller is not under any contractual obligation to reimburse the buyer for fees incurred in extending the lock in period for the mortgage rate. If the extent of the seller delay persists beyond 30 days from the date stated in the contract however, the buyer’s leverage to insist on reimbursement increases. The Law Office of William J. Reinhardt, Jr. is available to assist buyers and sellers on real estate transactions. For a free consultation, call 718-377-8880 or send an e-mail to bill@billreinhardtlaw.com.

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