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Is your buyer asking for an extention to closing date?

October 7th 2023

Some sellers have received requests from their lawyer to extend the closing date. What can you do?

Whatever the buyer's reason is you have found yourself being asked for an extention  and perhaps being told that without the extention the buyer cannot close the terms of the exisitng contract.Often this has something to do with financing

What can you do?

Talk to your real estate lawyer. If you decide to grant an extention, ask about these things:

1) Additional Deposit: the higher the deposit the less likelya buyer will risk losing their money and failing to close.

2) Proof of Financing: if they are saying their lender needs additional time then the lender should be able to send something in writing showing the financing will be in place as of the adjusted closing date.

3) Can wording be created that makes all deposits payable to the seller immediately if the buyer fails to close on the extended date without giving up the right to litigation for any damages?

4) Incurred costs between original and extended closing - insurance, utilities, additional legal fees - will the buyer be responsible for any or all incurred costs?

Odds are you will not need to use the above informtion but just in case....

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