Here’s something we can’t stress enough: real estate contracts have deadlines — and they matter. A lot.
One of the biggest mistakes buyers make (especially first-time buyers) is assuming everything is flexible. It’s not. When you sign a purchase agreement, you are legally agreeing to a series of timelines — including a closing date — and those dates aren’t just suggestions.
This is a contract. And you need to treat it that way.
Most Delays Are Caused by Buyers (Yep, It’s True)
Now to be fair, not every deal closes on the exact day it was scheduled. That’s pretty normal. But here’s the part most people don’t realize:
The vast majority of delays are caused by the buyer — usually because of a delay with the loan.
You might think, “What’s the big deal? I’m still buying the house.”
But if you don’t meet your contractual timelines, the seller has the legal right to cancel the deal — and in many cases, keep your earnest money.
“On or Before” vs. “On or About” — Yes, That Wording Matters
Most real estate contracts include a specific clause about your closing date. Read it carefully.
- “On or before [date]” means exactly that. You must close on or before that date.
- “On or about [date]” is a bit fuzzier — typically interpreted to mean within 30 days of that date (but that varies and is not guaranteed).
Don’t assume. Always ask your agent or broker to explain which one you’re working with, and what happens if you go past that date.
Per Diem Penalties Are Real
Some contracts include per diem penalties — a fee you’ll be charged for every day you’re late. It could be $100 a day. It could be $500. We’ve seen $1,000 a day on high-end homes.
If that clause is in your contract and you miss the closing date?
You pay — and it adds up fast.
How to Handle Delays (Because Life Happens)
Sometimes delays are out of your control — an appraisal comes in late, paperwork gets stuck, or something unexpected pops up. That’s okay. But if you think you’re going to miss a deadline:
- Communicate early with your lender, agent, and the seller’s agent.
- Request a written extension signed by both buyer and seller.
No extension = no protection. - Understand the risks — especially if your contingencies have already expired.
Miss the Deadline = Possible Default
Here’s the hard truth:
If you miss your closing date, and you didn’t get an extension in writing, and your contingencies are gone — you are technically in default.
At that point:
- The seller can walk away.
- They can keep your earnest money.
- You lose the house — and the cash you put down.
House Karma Tip: Stay On Top of Your Timeline
At House Karma, we’re here to help you stay on track. Our brokers and concierge team will:
- Help you understand every deadline
- Follow up on what’s due and when
- Walk you through what to do if there’s a delay
We’re your safety net — but you’ve got to stay alert, too.
So be responsive. Send documents promptly. Double-check dates. Don’t wait until the last minute to find your homeowners insurance or schedule your inspection.
You’re almost to the finish line — don’t trip over a calendar date.
