Q&A: Home Tax Credit – Does a Purchase Agreement count as a binding contract?

Question by Michael: Home Tax Credit – Does a Purchase Agreement count as a binding contract?
You need to have a binding contract to make the Tax Credit deadline of April 30, 2010. I have a Purchase Agreement for a short sale signed by the seller and buyer dated April 27,2010. But then we had to wait 4 weeks for bank approval. We estimate closing on June 15. Did we qualify for the credit?

Best answer:

Answer by Bostonian In MO
Sorry but you don’t qualify. Since the bank is a party to the sale, they had to sign for the agreement for it to be legally binding. Since they didn’t sign by April 30th, you didn’t have a legally binding agreement by April 30th.

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