The buyer and seller entered into an Arizona REALTORS® Residential Resale Real Estate Purchase Contract (Contract) along with a Buyer Contingency Addendum. The Buyer Contingency Addendum required the buyer to close escrow on his property by February 15th at lines 53 – 54. After escrow was opened the parties executed an Addendum extending the close of escrow date on the buyer’s purchase of the seller’s home. The Addendum did not mention or reference the February 15th deadline for the buyer to close on his sale set forth in the Buyer Contingency Addendum. The buyer did not close escrow on his home by the February 15th deadline and the seller claims the contract is therefore cancelled.
Is the Contract cancelled because the buyer did not close escrow on his home by February 15th?
The Buyer Contingency Addendum is very specific on the remedy if the buyer does not close on the sale of his property by the specified date. Lines 53-54 provide if the buyer does not close timely, “this Contract shall be deemed cancelled and the Earnest Money released to Buyer.” The Addendum executed by the parties references the close of escrow on the seller’s property; it does not address the close of escrow on the buyer’s property. The Addendum, therefore, does not change the cancellation language in the Buyer Contingency Addendum.