Members often ask what happens if the closing does not happen by the date specified in the contract. Does the contract automatically terminate at 5 p.m. that day?
NO, the contract does not automatically terminate if the transaction goes past the closing date.
Paragraph 9 of the One to Four Family Residential Contract (Resale) allows the non-defaulting party to choose an option under the default provisions found in Paragraph 15 if the other party fails to close the sale by the closing date. Additionally, where no time is stated in a contract, the deadline is generally at 11:59 p.m. on the date stated in the contract.
—Laura Miller, staff attorney