What happens if closing is delayed — who pays and what are my options?

A closing can be delayed by either side for various reasons: the buyer's financing falls through at the last minute, a title issue surfaces, or a lawyer is unavailable. How the delay is handled depends on whether it is resolved by agreement or one party is in breach.

Parties can agree in writing to extend the closing date. This is common and typically involves adjusting the statement of adjustments to the new date. If no extension is agreed to and one party is not ready to close, the other party can send a notice to complete — a formal letter giving the defaulting party a short period (often five days) to close. If they still cannot close, the non-defaulting party can treat the contract as terminated and pursue damages.

Carrying costs during an unauthorized delay — mortgage payments, utilities, insurance, and property taxes — are generally recoverable from the defaulting party. Keep a careful record of every additional expense from the moment the delay begins. Speak with your real estate lawyer immediately if closing does not happen on the agreed date; the steps you take in the first few days are critical to preserving your legal position.