Members have called regarding situations where a contract is signed with an attached Addendum for Sale of Other Property by Buyer (TXR 1908) and the buyer will not obtain proceeds from the sale of her other home by the contingency date stated in Paragraph A. Callers ask if extending the closing date on the sales contract will also extend the contingency date in Paragraph A, thereby giving the buyer the additional time she needs to obtain her proceeds. No. An amendment extending the closing date does not automatically extend the contingency date in Paragraph A. Paragraph A of the Addendum for Sale of Other Property by Buyer states that if the contingency is not satisfied or waived by the contingency date then the contract will terminate automatically. A buyer wishing to continue in a transaction past the contingency date without having obtained her proceeds would have to waive the contingency. Alternatively, if the parties want to change the contingency date in Paragraph A, then that change must be specifically addressed in an amendment.
Ryan Bauman, staff attorney