Yes!

     This is from the Florida Realtors / Florida Bar Contract:

     "Buyer shall keep Seller and Broker fully informed about the status of mortgage loan application and Loan Commitment and authorizes Buyer’s mortgage broker and Buyer’s lender to disclose such status and progress to Seller and Broker."

In AZ, yes. Case law from 2000. Must inform ALL parties if buyer or seller is unable to perform.

Just as soon as the agent has the information. Disclosing known facts and honest dealings are all a part of your agency relationship to your principal.

What does the purchase agreement/contract state?   In California, it's disclose - disclose - disclose.  

Yes, allways disclose

Absolutely disclose as soon as you know.  People make plans, hire movers, etc., so it's important to inform everyone sooner than later.  

The way the news of a late closing is received often depends on whose action or inaction caused the delay. 

In Chicago we are in Attorney Review at that time and the lawyer has the ball in their court for such interesting questions.

I believe people in different parts of the country will have different answers and local laws.

If you have information about such a material fact, you had better disclose and determine a way to get a legal extension.

I think it is the right thing to do, especially if we are unequivocally not settling on time. This happened with sellers of mine, and because of the buyers they had to cancel moving trucks and delayed the settlement of their own purchase. There is more at stake than "just" a change in settlement date.

The first thing I would do as a buyer's agent is talk to the lender and see if there is anyway they CAN close on time. Is there anything I can do to help make sure we meet that date? 

If not, then I'd tell the listing agent asap that an extension is needed.

Yes, by all means.

I would immediately call the listing agent and try to get an extension.

I don't see this as a disclosure issue, it is more of a how can i fix it issue and is it time to ask for an extension.

Of course. Do you think the seller won't notice when the buyer cannot close on the designated closing date? Better to disclose and try to get an extension.

The sooner the better, do not wait till the very last minute. Respect sellers ( they are probably packing and planning to be done, as they should) and all the team who works on it. Getting a few days of extension is not a big deal. 

 by all means.

Damon,
While it is important to be nice and cooperative, unless there is a legal issue you are bound to do what is in your clients best interest. Can you get them a fast hard money loan or other option to close on time? I would get the buyers to sign off on you disclosing if it may have negative ramifications to your client.

I have been instructed by my broker to disclose anything and everything...

I believe as a buyers agent you need to the date the lender CAN successfully close by and put it in the offer from the start.

Would be wise to keep the seller informed if they need an extension.

Yes.

The buyer's agent does have a duty to disclose right away.  

ABSOLUTELY!!!

Yes they are to be truthful and honest and if they have this information they should share it and try to head off later problems.

Needing an extra week to close is not a big deal.  Best to notify everyone and get a contract extension ASAP.  I would not however disclose confidential informaton as to "why" it is needed.  A good buyers agent does not blab.

To me, 'On or about" means a couple of days...if I needed another week I would still get an extension to keep everyone on the same page.

Eve

Absolutely. There may be deposit money at stake, especially if it's a "time is of the essence" contract. Why would you keep this a secret until it blows up?

I think it's a good idea rather than waiting until the final hour!!!!

Yes, and the agent needs to request an extension of time.  Why would anyone want to hold back that kind of information?

Um...  yes.  100% yes.  This is a duty to your buyer as well as the seller and everybody involved.  If everybody knows ahead of time they can all be on the same page.  

parked and reading

Communications runs the world...use it or perish

I never believe that its the job of the sellers agent to communicate the status of the loan to me, so I always touch base myself to get info. I also do the same with the closing attorney since they are often in the know even more so.