Can You Change or Extend a Closing Date on a Nova Scotia Home?

Plans change. A buyer's financing takes longer than expected, a seller's new home is not ready, or a move is delayed. Suddenly the closing date in your agreement does not work, and you need to know your options.

This article explains in plain terms how closing dates are generally changed in Nova Scotia, how to put a change in writing, and what can go wrong if the other side says no. Your own agreement controls the answer, so treat this as a guide to the questions to ask.

This article covers the law of Nova Scotia.

Do both sides have to agree?

The closing date is written into your agreement of purchase and sale. Once the agreement is signed, it is a contract, and a term of a contract generally cannot be changed by one side alone. In practice, moving the closing date earlier or later usually needs the buyer and the seller to both agree.

Some agreements include their own wording about the closing date, such as a set time of day or what happens if a party is not ready. Read that wording first. If your agreement says nothing helpful, assume you need the other side's consent and ask your lawyer to confirm.

How to document a change

Relying only on a phone call or text leaves you with little to point to later, so it is safer to put the change on paper. A change to the closing date should be recorded in writing and signed by all the buyers and sellers named in the agreement. This is often done through an amendment to the agreement. Real estate agents and lawyers commonly prepare these, and the province recommends using a lawyer for real property transactions.

• The new closing date, stated clearly.
• Confirmation that every other term of the agreement stays the same, unless you agree otherwise.
• Signatures from every buyer and seller.
• Any agreed payment for the extra time, such as extra interest or a share of carrying costs.
• A copy sent to both lawyers right away.

What else can move with the closing date

The closing date is tied to other steps. Before you agree, ask your lawyer whether the change affects any of the items below.

Because the date of the transfer can change which rules apply, a delay that crosses a legal change is worth raising with a lawyer or accountant before you sign.

If one side refuses

If the other side will not agree, the original closing date generally still stands. A party who cannot close on that date may be treated as in default under the agreement. The consequences depend on the wording of your contract and the facts, and can include losing a deposit or facing a claim for losses. Do not assume a delay is harmless.

• Ask early. A request made well before closing is usually easier to accommodate than one made the day before.
• Offer something in return, such as covering the other side's added costs.
• Check whether your agreement gives either side any right to delay.
• Do not move out, hand over keys or stop paying carrying costs on the strength of a verbal promise.

If talks break down, get legal advice before you take any step that could be read as backing out of the agreement.

What to do next

• Find your signed agreement and note the closing date and any related conditions.
• Call your lawyer as soon as you know the date is a problem.
• Talk to your lender, since a mortgage commitment or rate hold may be tied to the date.
• Ask the other side, in writing, for the new date you need.
• Get a signed amendment before you make any changes to your plans.

A lawyer can confirm how the change affects your own deal, including taxes and registration.

Frequently asked questions