Free Fillable Closing Date Extension Form

A closing date extension to a purchase agreement is a legal contract between a buyer and a seller in which the closing date is extended. This agreement may be used in instances where the parties agree to prolong the time frame for the closing of the real estate deal.

The form should be used whenever buyers and sellers want to change the closing date on a real estate transaction. It can be used for any type of property, including residential, commercial, or industrial.

The form asks for basic information about the parties involved and the new closing date, as well as the purchase price. Both parties must sign the form to indicate their agreement to the extension.

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When to Use a Closing Date Extension?

The extension may be for a specific period of time or it may be an indefinite extension. This agreement sets forth the new closing date and any other terms and conditions that are agreed upon by the parties.

There are a number of reasons why a closing date extension addendum may be used. Some common reasons include:

The buying party needs more time to secure financing for purchasing the property
The buying party needs more time to process their mortgage application
The buying party has some issues with the title of the property that is about to be sold
The selling party needs more time to find a replacement property
There are unforeseen circumstances that have delayed the transaction

If the closing date mentioned in the purchase agreement is not enough for the buyer, the purchase agreement is at risk of being terminated. This is why it is important to request an extension from the seller as soon as any complication appears. It is most common for purchase agreements to let extend the closing date by 14 days.

However, a purchase agreement might have a clause about the inability of the buyer to extend the closing dates. In this case, the seller might not grant an extension, which should result in the buyer’s earnest money deposit being returned to them.

How to Fill Out a Closing Date Extention Addendum?

Every closing date extension addendum has to include the following information:

Step 1 – Who are the seller and the buyer?

The first section of the form will ask for the names of both the seller and the buyer as they appear on the original contract.

Step 2 – What property is being sold?

Next, specify some details about the original purchase agreement. Write when the original document was created and where it is located.

Step 3 – When is the new closing date?

The third section asks for the date that has been mutually agreed upon by both parties to extend the closing date. This should be in mm/dd/yyyy format.

Step 4 – What is the purchase price?

The fourth section asks for the agreed-upon purchase price. This should be in a numerical format without any symbols or currency indicators.

Step 5 – Signature lines

The fifth and final section of the form contains signature lines for both the seller and the buyer. Each party should date and sign their respective line to indicate that they agree to the terms of the extension.

Frequently Asked Questions about Closing Date Extension Addendums

Do I need to have the addendum notarized?

No, you do not need to have the addendum notarized. However, both parties must sign and date the document in order for it to be valid.

What happens if we can’t agree on new closing date?

If the parties are unable to agree on an updated closing date, then the original contract will be void and the deposit will be returned to the buyer.

Can I make changes to the addendum after it has been signed?

No, you cannot make any changes to the addendum after it has been signed by both parties. If you need to make any changes, you will need to create a new document and have both parties sign and date it.

Where can I get a closing date extension addendum?

You can typically obtain a closing date extension addendum from your real estate agent or broker. You can also use our online template.

Do I need to use a specific format for the addendum?

There is no specific format that you are required to use for the addendum. However, it is important that the document is clear and concise and that it includes all of the necessary information.

Is there a fee to create a closing date extension addendum?

There is no fee to create a closing date extension addendum. However, you may need to pay a recording fee if you are required to file the document with your local county recorder.

How to Extend the Closing Date?

If the parties agree to extend the closing date, they will need to execute a new purchase agreement with an amended closing day. It is important to note that all other terms and conditions of the original purchase agreement remain in effect.

If you are considering extending the closing day on your purchase agreement, it is important to consult with an experienced real estate attorney to ensure that the extension is properly executed and that your rights are protected.

What Elements Should be Included in the Closing Date Extension?

The closing date extension addendum will be valid if it has all these components:

The name of the buyer. The name should correspond to the name mentioned in the original purchase contract.
The name of the seller. Like with the buyer’s name, the extension has to mention the seller’s name exactly as it is written in the original purchase agreement.
An updated closing date. The extended date of closing the real estate transaction has to appear in the closing date extension addendum.
Date of the request. The date when the request to extend the closing day was made has to be provided. The date when the parties came to an agreement has to be written down as well.
Signatures of both parties.

In addition to the information listed above, the addendum should also specify what will happen if either party fails to meet the updated closing day. For example, the contract may state that the deposit will be forfeited or that the property will revert back to the seller.

Are There Reasons Not to Extend the Closing Date?

There are a few potential risks that come with extending the closing date on a purchase agreement. These include:

The buyer may not be able to secure financing by the renewed closing date
The seller may find another buyer who is willing to close on the original date
The property may go into foreclosure if the transaction is delayed

These risks can be mitigated by including contingencies in the purchase agreement that protect both the buyer and the seller in the event of a delay. An experienced real estate attorney can assist you in drafting these contingencies.

What are some common problems with closing date extensions?

One of the most common problems with closing date extensions is that they are not properly executed. In order to be valid, a closing date extension addendum must be in writing and signed by both the buyer and the seller. Additionally, all other terms and conditions of the original purchase agreement must remain in effect.