Since we do not know if the transaction is a short sale, REO purchase of equity purchase and since we do not have a copy of the contract it is not possible to provide an intelligent answer to your question. You have conflicting comments below from agents who have been forced to make certain assumptions in order to come up with an attempt at an answer.

You have all of the pertinent information. You should get together with your broker who will be in the best position to help you.

Good luck. It sounds like a mess.

To expand on contingencies, some bank addendums state that contingencies are "effectively" removed by a certain date. if that's the case, you don't have top actively remove the contingency, it's done for you by the seller. If the property is not an REO, Jerry's answer is correct. It might be time to issue the seller a Notice to Seller to perform. Read your contracts and addenda very carefully, the answers are there.

But, more important, what is your agent doing??

Good luck, Missy, I hope this works out for you.

Warm regards,
Cory

You are missing some key information so let me fill in some blanks.

1. If the property in question is an Homepath or other such property the buyer contingencies could be removed passively; you will need to check the contract. However, the contract should proceed not terminate.

2. If this is a 'regular' contract using CA-RPA then check out paragraph 14C1. The seller has the right to terminate only after issuing a NBP and only after the time period of the NBP has expired (default 2 days.) They may not terminate just because they want to or because they have a higher offer. In CA the buyer has all the protections until the contingencies are removed. Even then the seller cannot terminate unless the buyer is in some sort of breech.

As suggested, get your broker involved immediately. Usually a high level conversation between brokers can resolve the issues. Do not sign any paperwork they may give you without the guidance of your broker and/or buyers attorney. As since this is dealing with legal issues; get a lawyer involved now as we are not legal counsel and my (our) advice is opinion and not legal fact as we may not have all the necessary information.

Contingencies have to be actively removed not passively. If the contingency period has expired then the seller should issue an notice to perform or you should have requested an extension. They cannot have 2 escrows open on the same property.
If the seller did not perform then you should issue a notice to perform. This may require an attorney

No.......unless it was an REO and they made mention in the contract that they can cancel at anytime prior to the close of escrow. And....if there was a depost in escrow from the buyer, the seller cannot have two escrows on the same property and until the cancellation of escrow is signed and deposit dealt with...(keeping it or returning) then another escrow cannot be opened. If the buyer is ready to close then send them a demand to close escrow but try at this point to stay away from NTP since it gives the receiving party an out.

You need to have your broker contact escrow and the listing agent ASAP. If your in a position to close, you can force them to close by not signing any cancellation paperwork. If they didn't give you a notice to perform, then I would serve them with a notice to perform to sign the HUD so you can get your loan docs to escrow. I would also advise your client hire an attorney right away to help put pressure on the listing side to follow through. It's not easy for a seller to cancel in our state.

Don't let them push you around!!!

Bobby Martins

Missy,
According to your words, you were out of contract. The time to get an extension is before the contract expires. Had the other offer already been there, it may not have mattered unless your initial contract had a provision requiring them to extend due to a lender issue.
What you have is a legal question that you or your clients should have reviewed as soon as possible if you hope to still close this sale.

Your purchase agreement has very clear time lines for buyer and seller to perform their tasks.

The timeline for buyer to remove the loan contingency is very clear, if the buyer fails to this the seller can cancel.

The seller can not have two escrows open on the same property. They would have to cancel your escrow then open a new one. They can however re list the property and accept a new offer pending cancellation of the first escrow.

Kawain Payne, Realtor