Updated on January 15th, 2021
The closing date extension addendum aims to specifically modify the date of closing on a previously executed purchase agreement. Extenuating circumstances may emerge during the period between endorsement of the contract of sale for a home and the closing date. Many conditions can contribute to a delay, such as slowed loan procedures, or an unanticipated technicality with the title. Additionally, the buyer may also experience family or work-related setbacks that could cause impede closing. To mitigate a potential breach of contract, the parties can elect to instead adjust the terms for the closing date.
When proposing an extension, it is for the buyer to initiate an offer to extend, allowing the seller to accept or refuse. There may be a number of reasons, depending on each situation, why a seller may want to accept or decline the offer. Extending the contract with the provided addendum allows both the buyer and seller to salvage the agreement should they both wish to resolve the delay and move forward.