The Real Estate Encyclopedia
What Happens If The Closing Is Delayed?
Category - Home Selling Questions - General Home Selling FAQ's

When a real estate purchase agreement is written, a closing date is also negotiated between both parties and included in the contract.  The choice of closing date will depend on when the buyer wants possession and when the seller wants to move out and how long it will take for the loan to be approved, title searched and other contract requirements to be fulfilled. 

 

Sometimes delays cannot be avoided and are often related to the approval of the loan.  This is usually not a problem as long as the buyer still wants to buy and the seller still wants to sell and the closing is delayed for a reasonable amount of time.  Many real estate contracts include a statement that allows the broker to automatically extend the time for 7 days.  If the closing must be extended further, both buyer and seller must sign the appropriate form delaying the closing. 

 

At times, reluctant buyers may attempt to use unnecessary delays as an excuse to cancel the contract.  In this case, courts will not go along with a reluctant buyer or seller who manufactures delays so as to delay or cancel the closing and then claim default.  If the reluctance continues and attempted negotiations are unsuccessful, the performing party may choose to complete its requirements and then ask the court to force the reluctant party to the closing table. 

 
Category(s)
Home Buying Questions - Buying Legal & Closing FAQ's
Home Buying Questions - General Home Buying FAQ's
Home Selling Questions - General Home Selling FAQ's
Home Selling Questions - Selling Legal & Closing FAQ's
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