Most home closings stay on schedule, but you’re not buying most homes. You’re buying your home, and with all the things that can delay a closing, there’s a good chance you will run into delays. So exactly how many times can your closing keep getting delayed?
What’s the limit on the number of times a closing can be delayed?
There’s no official limit on the number of times a closing can be delayed. If you have an inspection problem, then a title problem, and then a mortgage problem, it’s not strike three and you’re out.
In many situations, either the buyer or the seller can back out if you can’t close by the closing date in the contract. Since the contract is an agreement to close by a certain time, either side has the right to refuse to agree to an extension. However, even that’s not a black-and-white rule as courts have enforced delayed contracts when both sides were attempting to close in good faith.
Will the seller want to call off a closing?
Once the seller accepts an offer, they usually want the deal to go through just as much as you do. They already decided to sell their home, and they agreed on the price. However, there might be practical reasons a seller may want to back out after closing delays. They may need to close quickly to avoid losing the home they want to move to. They might also worry that if the sale falls through after lengthy delays, they might have trouble selling during a slower time of year or after the market has cooled off.
Why should the buyer worry about closing delays?
Like the seller, you want the deal to go through because you picked this home for a reason. However, even if you’re optimistic and believe any problems with the inspection, title, financing, or anything else will be resolved eventually, waiting isn’t free. You might need a place to stay after selling your old house or moving out of your apartment. You might also need to pay to store your stuff or board your pets. Eating out instead of cooking in your own kitchen also costs more.
If you’re worried about these costs but don’t want to lose out on your dream home by calling off the deal, turn to Insure My Closing. We help protect buyers against expenses from unexpected delays and take the stress out of the home buying process. Contact us now to learn more.