Buyers and sellers generally agree to finalize the purchase of a home within a certain amount of days when they enter into a contract with one another. This is called the “closing” date.
Many reasons may necessitate a closing delay. You may wonder what your options are if a situation similar to one of these occurs.
What you need to know about home purchase agreements
Closing dates are a goal, but they are often missed. In fact, closing dates are often extended due to problems that crop up during inspections. You may want (or need) to extend the closing, for example, to give the seller time to do some much-needed repairs.
Problems with your lender can also cause delays with closing. For example, your lender may request additional financial information to process your loan. A title company may find a problem with your prospective home’s title. An appraisal may come back at less than the purchase price for the home. All of these factors may delay the closing.
It’s likely that your contract already has an automatic one to two-week closing date extension provision in it to account for this.
Sellers may also need to adjust a closing date for one reason or another, although this is rarer. Sometimes a seller needs an additional week or two to finalize the deal on their next home or to find new lodging and move.
Is a contract extension a viable option in your case?
Real estate closings can become delayed for a variety of reasons. You’ll want to understand the various circumstances in which this could occur to ensure you protect your interests.