Way Off Topic-- Contract Decisions

I would not grant the extension.  If they can't close on the 23rd, then it is over.   They can sign another contract when they are sure the house is still available... but if you sell it before that - that is great. 

in a meantime - your realtor needs to start advertising and start showing your house again.  Before the deadline of Feb 23... if she/he does not - it may be a reason to terminate the relationship-break the contract. And hire a new realtor. 

way off topic of "way off topic". But, how do you sell anything easily with the username 'selhard'? You've predetermined this course of events. Just playin', but honestly? Good luck in finding reputable buyers.

You guys are great!  Your generous offering of valuable points has given me a rush of courage to say "no."  It also has me tempted to post even more OFF TOPIC problems like lack of support with my aging mother, dramatic daughters, and intrusive in-laws.  Maybe if I had such straightforward guidance with all of life, I would have an easier time with ON TOPIC problems like staying on the post-WLS track.  

To answer some questions from above:  a) we aren't desperate to sell nor is the buyer desperate to buy  b) we wouldn't be canceling the contract, only saying no to an extension request  c) there is a house inspection contingency, therefore, all the buyer has to state is the house doesn't pass his personal inspection and he gets to keep his earnest money d) there are two realtors involved--the buyer's and our's  e) our realtor fully expects and anticipates the buyer to move on to other house offerings in the area if we don't honor his extension request.  He is a cash customer waiting on monies to be released from a trust account, not from a lending institution.  Does that change some of your opinions? 

there is a house inspection contingency, therefore, all the buyer has to state is the house doesn't pass his personal inspection and he gets to keep his earnest money

Could you request the personal inspection to be done before 23 and to remove that condition from the contract?

have you been presented with real documents re the trust or is that a "verbal" "trust me" comment?

what is the condition to release the trust? lawsuit? or just legal paperwork? is there a trustee you can contact to verify the info?  

For me a cash offer does change things a bit. But I'm not sure I would go solely on his word. I would want some documentation.

Unless you're doing seller financing, everyone is a cash buyer as far as the seller is concerned.

One way or another, he has a contingency that he can't clear in time to meet the contract.  If you're really interested in closing with him, give him the extension if he'll waive the inspection and let his down payment go hard.  Then he's got some skin in the game and you can see how serious he is.

Otherwise, I stick with my original suggestion to just move on.

1) People with money held in trust accounts are probably the most likely to sue. 2) A competent lawyer could turn your refusal to grant an extension into a breach of contract case, especially considering that you already agreed to one verbal extension (course of dealing). Although this is definitely true, most people do not think this way, so the possibility is still remote.

Don't know what state you live in, but real estate sales are usually only based on the written contracts.  Don't know why a real realtor would ask for anything oral that is not in writing.  If you agreed to the first extension, I would have had the parties change and initial the contract.  IMHO, these buyers are a long shot and unless your house is pretty much unsellable (condition, age, location, flooded, no indoor plumbing), I would run from these buyers and maybe your real estate agent. To me, this sounds like a bizarre set-up.

The contingency clause for it passing inspection is standard.  Even without it,  buyers can always find a way to back out of a contract,  and it happens frequently.  

A good,  experienced realtor should have good instincts on if it will ultimately close.  I'm not sure how strong of a realtor you have,  but it's their job (and livelihood) to give you the best advice.  I'd ask WHY he/she thinks it's a good idea to extend,  and see how you feel about the response you get.  

Another thing to consider: closings are rarely scheduled for less than a month out.  Best case scenario if you don't extend,  is you get a new buyer and still close the end of march.  There again,  there's no guarantee this new buyer will close on time or at all.  Many contracts fall through! 

I believe I understood your verbal agreement to extend was for the previous extension,  correct?  So no agreement to extend to the new date yet?  Even if so,  the statute of frauds dictates that any contracts relating to real estate must be in writing.  There are some exceptions, and I'm not an attorney,  but it seems to me that if you prefer to let it lapse and sell to a new buyer,  you have that right.  

Trust your gut! With the info I have here from your post,  paired with my personal and professional experiences,  I would say wait it out,  but it's your house,  your money,  and your instincts, so my advice is free,  but you get what you pay for! 

Ending with a big thank you and appreciation to almost 20 responses given so freely.  I told the realtor, "it feels in our best interest to put the house actively back on the market."  The realtor accepted and respected the decision better than expected.  Something about this house deal didn't feel right; I trust my RNY intestines still has gut instinct.