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What Happens if a Seller Missed the Closing Date?
HomeLight
Real Estate
8 months ago
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When a home sale closing is delayed, it’s usually the buyer holding up the deal due to financing hiccups, low appraisals, title issues, or problems found during the final walkthrough. These are common obstacles with obvious solutions. But what happens if a seller misses the closing date?

In this guide, we’ll provide expert insights on why a home seller might miss the closing date, and what you can do to resolve the delay and get your home purchase back on track. We’ll also look at legal options if a seller defaults on the purchase agreement.

“Both parties live and die by what’s in the purchase contract,” says Stephen Donaldson, a leading real estate attorney with The Donaldson Law Firm in New York. “The closing date is always in the contract. If there are contingencies around that, you live and die by the contingencies you’re obligated to. The buyer and seller have rights and obligations to pursue the ‘contract to sell’ to which they agreed.”

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What happens on a home sale closing date?

The closing date marks the final step in the homebuying process, where ownership officially transfers from the seller to you, the buyer. This day is momentous for several reasons:

  • Final walkthrough: You’ll have the chance to inspect the property one last time, ensuring everything is in the agreed-upon condition.
  • Signing documents: Both parties sign legal documents, including the deed and mortgage paperwork, finalizing the sale.
  • Paying closing costs: You’ll pay any remaining fees and costs associated with the purchase. This often includes loan origination fees, appraisal fees, and title insurance.
  • Receiving the keys: At the end of the day, you’ll receive the keys to your new home, marking the beginning of a new chapter.

Reasons a seller might miss the closing date

“The most common reason a seller delays closing is because they don’t have a new place to live yet,” Donaldson says. “They may be planning on buying another home, and they either haven’t found a new one yet, or they are waiting for the people they’re buying from to get out of that house — that second house — so they can move out of the house they’re selling.”

He adds, “Or sometimes if there’s a problem with the mover, they may need another few days. They’ll say, ‘My stuff is still here. I can’t get out because the movers didn’t show up.”

Here are some other common reasons a seller might miss the closing date:

  • Financial issues: The seller may be experiencing difficulties in paying off their existing mortgage or other liens against the property, causing delays.
  • Title problems: Unexpected issues with the property’s title can arise, such as disputes over property lines or undisclosed easements.
  • Repairs taking longer than expected: If the sale is contingent on certain repairs being completed, any delays in these can push back the closing date.
  • Personal circumstances: The seller’s personal situations, like illness or a change in family circumstances, can unexpectedly delay the process.

“So if the seller says, ‘Listen, I need more time,’ it’s usually because they or a family member don’t have any place else to go,” Donaldson says. “They may have children who are going off to college, and this is why they’re selling. They say, ‘I haven’t moved out yet; my kid is still here. They’re not going to college for another week. Give me some more time.’”


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