Confronting the 8-day Unilateral Extension - Part 2

Last week this article discussed a valid use of the Unilateral Extension.  This week, we present an example of an attempt to use the Unilateral 8-day extension incorrectly.

This is the relevant language:

“Buyer/ Seller hereby gives notice to the other parties to the above-referenced purchase and sale Agreement that the closing date is extended for eight (8) days for the following reason(s): 

1. Seller(s) cannot satisfy valid title objections; excluding: (a) liens, judgments, and deeds to secure debt that can be satisfied through the payment of money or by bonding off the same; and (b) title objections which do not prevent Seller from conveying good and marketable title to the Property. 
   

Background
Example 1 - The property is a part of a condominium and the seller is so behind on monthly assessments that the association has filed a lien on the property.  The lien can be lifted by payment of the back assessments, but the seller hasn’t paid.  Is this a valid subject of the 8-day extension?  Is this even a title issue?  
Example 2 – The Seller withheld the final payment to a roofer to have his roof replaced.  The roofer timely filed a materialman’s claim for payment.
Example 3 – The IRS and the State of Georgia have liens on the property for non-payment of taxes.
Example 4 - The owner’s ex-wife has a judgment for child support and has filed a lien on the property for payment.

Analysis
If a title insurance company will not insure the title at its regular rates and subject to only standard exceptions, there is a title issue.   So, yes, these are all examples of liens that would prevent a title company from issuing a title policy. However, this is where the GAR exceptions come into play.  These are all liens that can be satisfied and released by payment of money.  Therefore, the GAR Unilateral 8-day extension cannot be used by the Seller.

Of course, there is always the other way to extend the Agreement – a bilateral agreement to extend, executed by both parties!