What if my sale is closing late? Can I still receive a tax credit?

Question:
First time tax credit buyer entered a purchase agreement several weeks ago, intending to close by November 30 to take advantage of the first tax credit program. Closing will not happen by November 30, but should happen in December. Do buyer and seller need to rewrite their purchase agreement to reflect a different date or do anything else to allow buyer to take advantage of the extended tax credit program?

Answer:
No. Buyer and seller do not have to do anything except close the transaction . There is no need to rewrite a new agreement or modify the documentation in any way.

So long as the transaction closes before the end of the extended tax program, the buyer will be eligible for the tax credit. With enactment of the extended tax credit program, the November 30 deadline becomes irrelevant.

The preceding is an opinion from Annie Fitzsimmons, the attorney who answers questions for the Washington Association of REALTORS® Legal Hotline. For additional questions or information, please contact Jen at (206) 293-1005 or send me an email to jen@jenhudsonhomes.com.