Closing being delayed : RealEstate

Closing being delayed, seeking advice. This is in California.

Here is a summary of events.

  • Our original closing date was supposed to be 11/27.

  • It’s being delayed because it’s a new construction and the Certificate of Occupancy is still not issued. The seller claims we are just waiting on the city and it should be any day now.

  • Without CofO, gas can’t be turned on. Our initial inspection was done without gas.

  • Found a few things and submitted repair request after the inspection, which the seller accepted.

  • Lender pushed out the loan docs contingent of receiving the CofO. Both lender and escrow recommend that we sign so they can fund as soon as the CofO is issued and close.

  • Agent recommends doing a holdback in escrow since we won’t have time to check the gas appliances with this schedule.

  • We are tentatively scheduled to do a final walk-thru tomorrow (Friday, without gas), and sign the docs on Saturday.

  • Our agent, who is also the seller’s agent (the market we are in is crazy competitive, I honestly don’t think we would’ve gotten our offer accepted if it wasn’t for her so no regrets there) visited the property herself today and find that a couple things from our repair request was not done. One big thing involves flooring in one of the bedrooms. The rest are small we don’t really care.

  • With this new information about the repairs not being done properly, I am hesitant to sign the docs. I guess we can ask for even bigger amount of holdback, but is that a wise option?

What do you think is the best course of action for us? It’s been very frustrating with the closing being delayed with no fault of our own. The sellers are professional developers, they should know what they are doing. I feel like they dropped the ball somewhere obtaining the CofO. Now add this flooring issue.

Should we ask for bigger holdback or delay signing? Any other options?

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