Closings get delayed for many reasons, including lender issues, title problems, repairs, or appraisal disputes. How you handle a delay can affect your earnest money and your right to walk away.
Know what your contract says about the closing date
Texas residential contracts set a specific closing date and may allow extensions in limited situations. The contract may also describe what happens if one side fails to close on time and who is considered in default.
Put changes in writing
A casual agreement over the phone to "push it a few days" may not protect you. A written amendment signed by the parties can set a new date and clarify other terms, such as how earnest money and possession are handled.
Ask these questions
Why is the closing delayed, and who is responsible?
Does the delay affect the loan rate lock or financing deadlines?
Is the other side asking for something in exchange for more time?
What happens to the earnest money if closing does not occur?
Avoid costly mistakes
Do not assume a delay waives deadlines that protect you, and do not move out or let the other side move in without clear written terms.
A short delay is usually manageable if the paperwork is handled correctly. A review of the contract before you agree to anything can save significant trouble later.
Davila Cobos Law Firm, PLLC represents clients in San Antonio and Laredo. Learn more about our real estate transactions attorney services, or contact the firm to discuss your situation.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Every situation is different, so talk to a Texas attorney about yours.
