Extending a Real Estate Contract

If your home buyer is getting a loan, it is always a good idea to include both a Financing Contingency and an Appraisal Contingency in the Purchase and Sale Agreement.

If the home seller is involved in a short sale, the Short Sale contingency language should be contained in the Special Stipulations.

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When it becomes apparent that the original closing deadline in the contract will not be met, the realestate agents should communicate with each other immediately and work to get a mutual extension signed by all parties.

There is a Unilateral Extension form available, but this can only be used for delays due to title problems or lender/closing attorney issues.

The Unilateral Extension can only be used once, and it does not promote cooperation and communication. It is much better to keep the other parties informed and involved in the process. Unless the seller has a back-up offer or unless the buyer has found another house or is getting cold feet, both parties should be willing to work together toward the common goal: the CLOSING!

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