One action you can take is relatively simple: grant the buyer an extension, no strings attached. Most states allow the buyer a “reasonable” adjournment of the closing date before the seller can kill the deal. Amy Fontinelle, writing for the financial site Investopedia, says the seller may agree to extend the closing date without penalty if they are in no rush to move. Most buyers and sellers will agree to extend the closing date by a couple of weeks, if necessary. If you have been agreeing to requests by the buyer to extend the mortgage contingency and closing date deadlines, then the buyer’s earnest money is protected in the event he or she must cancel. Amy Fontinelle, writing for the financial site Investopedia, says the seller may agree to extend the closing date without penalty if they are in no rush … Of course, you don't want to dither too long. If you pay cash, you and the seller can arrange for a faster closing while allowing enough time for a home inspection and any needed repairs. However, since time is not of the essence to the closing date, the buyer might argue that a short delay in closing is not a material breach of contract. Increase the deposit to an amount that would be “painful” to walk away from; Agree to be responsible for all expenses including taxes and property insurance from the original date of closing forward; Agree to reimburse you for all mortgage carrying charges from the original date of closing forward until closing; Agree to reimburse you for all of your bridging costs; Agree to release the deposit to you immediately if the closing does not happen on the extended closing date; Reimburse you for your additional legal costs; If you will have money left over to be invested, the Buyer may be asked to pay you a “lost opportunity” cost. For example, on a house closing date, the following few events occur: 1. If you are faced with an extension of closing situation, consult your lawyer immediately. Steve McLinden, writing for the financial site Bankrate, says some contracts will allow a reasonable amount of time beyond the closing date to complete the transaction. However, the seller can also push back the closing date if they feel they need extra time. It is actually fairly common to extend closing dates because (a) the seller needs to move out, (b) the house is not ready, or (c) the lender of the buyer is not ready. The closing date is fast approaching. But if the market hasn’t been kind, selling your old home has presented you with a few challenges. An extension is likely due to an unforeseen circumstance such as issues with the title, buyer’s financing, buyer’s need to sell their property, or … As a result you can’t close the sale of your old home before the closing date on the new one. This loan is usually unsecured (not registered on title). My contract today showed that the buyer modified the mortgage commitment and settlement date by extending it by one month. In some cases, however, the seller may seek to end the deal if you can't close on time. The Seller Can Kill the Deal. Fiddleheads co-op alleges former employee embezzled over $229,000, Longtime New London school administrator to resign, Residents asked to ring a bell on Christmas Eve, Hawaii volcano gushes lava from vents in summit crater, 'Mom's worth it': U.S. holiday travel surges despite outbreak, Edging into Christmas Eve, EU and U.K. near Brexit trade deal, Sen. Blumenthal visits Stonington restaurant, talks Payroll Protection Program, Hero or not, cashier was on the front lines, Weather experts: Expect a windy and rainy Christmas in Connecticut, Emily DeRoehn - All-Area Girls' Soccer Player of the Year, Sam Montalto: All-Area Boys' Soccer Player of the Year, Jordan Malloy - All-Area Girls' Cross-Country Runner of the Year, Luke Anthony - All-Area Boys' Cross-Country Runner of the Year, Trump turns to fringe element in election fight, Too big to read: Giant bill a leap of faith for Congress, For unity, look to the good that President Trump has done, Trump signals he might not sign relief measure, demands changes, Trump vetoes defense bill, setting up possible override vote. The cost a buyer has to pay for an extension should also be spelled out in the contract. … McLinden says most delays stem from processes the buyer needs to complete. Close on your closing date and if they want to rent back for one week, fine. It is not meant to be relied on as legal advice. He could amend the contract to extend the closing date to allow the lender time to process the loan. … You have a home of your own that you are trying to sell but for any one of a number of reasons, either the home hasn’t sold or you can’t get a closing date that coincides with the one for your new purchase. The seller has to honor this per the standard NC contract. Once the offer has been accepted, you'll receive a closing date by which the deal should be completed. Setting a specific date … So here’s a scenario: You have entered into an Agreement of Purchase and Sale to buy a home. You should also make sure the seller is kept informed about your need for more time, since they are more likely to cancel the deal after the closing date passes if they have not heard from the buyer. The National Association of Realtors says that if they terminate a sale because it wasn't completed on the closing date, they'll have to go through the extra trouble of re-listing the home or arranging a new closing date for a different buyer. It delayed our closing over a week which really should not have been an issue. Once a buyer and seller have agreed on the price for a house, they sign a purchase contract that outlines the terms of the deal and includes a closing date. Such an amendment will result in closing date extension.