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Joanne McPhail
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When a buyer wants to extend the closing date to a later date what are the vendor's options if he declines? Is this a practical move? Les

posted by les spellman to Joanne McPhail  ::  Views (7243)

Hi there:  If a buyer cannot close on the closing date set out in the Agreement of Purchase and Sale, the seller can agree to extend that date, if he is so inclined.  Sometimes monetary inducements are given as a result of such a request by the Buyer, as pushing back a closing date can be an inconvenience to the Seller, at a minimum.  The Seller is not required to extend the closing date, however, the Seller should consider the costs and delays associated with re-listing, and weigh the costs of extending with a current Buyer.  If the Seller refuses, the Buyer would be in default under the current Agreement if he is not  able to close on the stipulated closing date.  But the Seller is required to try to mitigate his damages by re-listing the property.  In the end, if the Buyer's default caused damages to the Seller, the Seller could sue the Buyer who defaults.  Often a deal is made with respect to the deposit being held by the lawyers, in order to get it released.