Q: I represent a buyer with an executed Florida Realtors/Florida Bar Contract For Residential Sale And Purchase or Florida Realtors Contract For Residential Sale And Purchase contract. My buyer is working with his lender but needs some additional time to secure his financing. Should I ask for an extension to the closing date to make sure that my buyer has enough time to get his financing?
A: Not only do you need to request that the seller grant an extension for the closing date, but it’s recommended that you also request an extension to the financing contingency term. Extending the closing date doesn’t automatically extend the buyer’s time in which to obtain financing. Generally, a contract that’s contingent on financing includes a timeframe during which the buyer can apply for and secure financing. Depending on the contract’s terms and financing contingency, buyers may risk losing their escrow money if they aren’t able to secure financing before their financing contingency term expires.