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ANNOUNCEMENT: We are dedicated to your legal needs and available during this difficult time. In order to do our part to help stop the spread of COVID-19, we are offering virtual consultations for both new and existing clients upon request. Click HERE to contact us and request a consultation by video, telephone or in person.

What should you do if a real estate buyer delays a closing?

On Behalf of | Jan 19, 2022 | Real Estate |

You spent months trying to sell your New York home, and you finally found the perfect buyer. You accepted the offer, made an agreement together and scheduled the home inspection. Suddenly, the buyer wants to delay the closing. What should you do?

SFGate explains options for home sellers in your position. Learn how to protect all the hard work you invested in selling your property.

Offer an extension

After speaking with the buyer, you may learn the delay is because of a problem with the mortgage, or maybe some closing funds fell through. Either way, you may grant an extension for the closing by a few days.

Implement a delay charge

Even if you offer an extension, you may become wary about the buyer holding up her or his end of the deal. If so, consider charging a small fee each day the other party delays closing. That way, you show goodwill toward the buyer, but you also show how committed you are to upholding your original agreement.

Back out of the deal

Check your sales agreement for an “on or about” closing date or automatic extension. If the document contains neither provision and the closing date comes and goes without a signed extension or closing, you could lose the contract. If you do not have a contract, you have the right to back out of the deal, and you could take the buyer’s earnest money deposit for your trouble.

You need not feel you wasted all the hard work you put into selling your property. Even if the buyer puts off closing, you could have viable options that protect your bottom line.