This document is used when the parties involved come into an agreement to extend the date when the buyer can close on the property. The extension can be caused by unforeseen circumstances including but not limited to issues with the title, buyer’s urge to sell their property, buyer’s financing, or any other reason that has been accepted by the seller. In a case where the seller does not feel the need to give an extension, according to the purchase agreement, he/she can request to have the money deposit refunded to the buyer.
Basic Contents of Closing Date Extension Addendum
The information in this form will vary with different contracts, but below are the basic contents available in any extension addendum document.
Date: These are the calendar date for this document contains the month, day, and year. This is the date when you are filling this form.
Buyer’s Name: Under this section, write the buyer’s full name as it appears in the original contract.
Seller’s Name: Also indicate the seller’s name as they appear in the original contract.
Execution date: You will indicate the date when this plan was carried out, as listed on the original document. Note down the day, month, and year.
Closing date: Under the closing date, you will indicate the period of extension up to the closing date past the original purchase agreement date. Note down the day, month, and year.
Signatures: This form must carry the signatures of all the parties from the original document; otherwise, it will not be considered valid addition to the contract concerned. The buyer and seller will write a valid signature, record the current date, and then print the names, respectively. The last person to give the signature is the agent, and he/she follows the same process.
Extension of Closing Date Clause and Samples
The extension date clause is offered by the buyer to the seller due to unforeseen circumstances. He/ she may or may not offer the extension date. Below are the samples.
- Extension of the closing date: The buyer and seller hereby agree to amend the contract, and the closing date shall occur on or before the date……………….
- Extension of the closing date: The seller has decided that it will be difficult to cure any unpermitted expectations before the closing date and the seller will get the rights but not the obligation to postpone the closing time for up to 13 days by giving written notice to the buyer, not after 3 days.
- Extension of the closing date: The phrase ” date…………. of the original agreement has been deleted and replaced by the phrase “date………..”
This is the extension granted to the buyer by the seller due to unforeseen circumstances that may arise before the initial contract agreement on the closing date.
The buyer can request additional time so as to process the mortgage application. The purchase agreement allows an automatic closing date extension for up to a maximum of 14 days.
If you, as a buyer, do not close escrow on time, then there can be all sorts of problems. The main problem is that the purchase contract has an acceptance date attached with a closing date. If you miss this date, then the contract is in jeopardy, and the common action is to extend this closing date.
There are many scenarios where the buyer can delay the closing date. For instance, the home mortgage loan has been delayed; then, the closing date can be extended to give time for the loan to process. The buyer can also delay the closing date if your purchase is contingent on the sale of the current home.