The Fine Print: Part 6: Extension of Closing Date

This form should be used when exercising an extension to closing, whether mutually agreed upon or unilaterally, as stated in the contract under F-3(a).

When the extension requires mutual agreement, the form should be completed using the top box with the new date. You must also select whether or not F-3(a) still applies or if F-3(b), Time is of the Essence applies. If the extension under F-3(a) has already been used in its entirety, then Time is of the Essence will apply. Since this is a mutual extension, both parties must sign.

If the unilateral extension is to be used, then the bottom box is to be completed with the number of days and the new targeted date. It is important to note that if your contract states 10 days, and you are only using 7 days, that still leaves a 3 day “balance” that the other party will have the option to use during the course of the transaction. Only the party who is exercising the unilateral extension needs to sign.

Did you know?

Anytime a change is made to the closing date, whether it be an extension or using an amendment to move the date up, anything tied to the closing date will also be affected.