BIC TIP #1336: Seven Days After Closing
We didn’t hit our closing date, and now we’re past the seven-day grace period. What happens? This question comes up a lot.
What the Contract Says
- If the parties fail to close within seven days after the Settlement Date, the contract does NOT automatically terminate.
- The delaying party may be in breach.
- The non-delaying party may have the right to terminate.
Why It Matters
The contract stays in full effect until it is properly terminated. It is not terminated until it’s terminated, so don’t tell your client the deal is over just because the calendar moved past the grace period.
The Practical Takeaway
Hopefully every deal makes it to the closing table. If one doesn’t, make sure it goes away properly, in writing, and talk with your BIC or a real estate attorney before anyone acts on the assumption that it’s done.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.