Updated August 01, 2023
A closing date extension addendum is used when the parties both agree to extend the date at which the buyer may close on the property. An extension is likely due to an unforeseen circumstance such as issues with the title, buyer’s financing, buyer’s need to sell their property, or any other reason acceptable by the seller.
Depending on the terms of the purchase agreement, if the seller does not wish to grant an extension, they may request to have the earnest money deposit returned to the buyer. Although, if the market conditions have changed to the benefit of the seller since the property went under contract, the seller may be motivated to grant an extension in the hope that the buyer closes at the agreed-upon sales price.