ArcaMax

Reader Question: If the closing date has passed by over a week and has already been set back another month, from April 4 to April 22, am I free to renegotiate the price or sell my home to someone else, as it is now April 29?

Monty's Answer: Your question addresses a common frustration in real estate transactions. When your closing date has repeatedly slipped, it's natural to wonder about your options.

The definitive answer lies within your purchase agreement. Real estate contracts typically address what happens when closing dates are missed. Most importantly, check whether your contract contains "time is of the essence" language, establishing firm deadlines rather than flexible targets.

Before making any decisions, investigate why the closing date keeps moving: Is the buyer having financing difficulties? Are there title issues? Appraisal problems? Understanding the reason will help determine whether this is a temporary hiccup or a sign that the deal may collapse. Consider these important factors:

No. 1: Was an amendment extending the closing date executed properly?

No. 2: Is there a penalty specified for failure to close on time?

No. 3: Do you have another interested buyer waiting?

No. 4: Could a new buyer encounter the same obstacles? Are you simply seeking a way out of the contract??

Today's mortgage environment presents many challenges for buyers. Lenders have tightened requirements, and appraisals frequently come below the purchase price, causing last-minute financing issues. This reality might explain your buyer's delays.

You always have the right to propose new terms, including price adjustments or per diem fees, to compensate for your continued carrying costs during the delay. However, unilaterally canceling the contract to sell to someone else could expose you to legal risk. The original buyer could sue for specific performance, forcing you to complete the sale despite attempting to move on.

Consult a real estate attorney immediately if you're serious about terminating this relationship. They can review your specific contract, understand your state's laws (which vary considerably on this issue), and help you establish a formal "time is of the essence" notice with proper deadlines and consequences.

Document all communications about the delays. If the buyer signed an amendment extending the closing date to April 22 and has now missed that deadline, you're in a stronger position to take action.?

Remember that market conditions significantly impact your leverage. In a rising market, you might find better offers elsewhere. In a declining market, your current buyer might request further price reductions before closing.?

Real estate transactions rarely progress exactly as planned. While frustrating, delays are common enough that contracts specifically address them. Understanding your contract is your first step toward resolving this situation in your favor. The second step is communicating with the buyer directly to learn the buyer's situation so that you can proceed in a fashion that allows you to meet your goals.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

----

Copyright 2025 Creators Syndicate, Inc.