How long can a party delay after a new settlement date is agreed on?

QUESTION: I have one of my listings under contract.  We’re past the Settlement Date and now the buyer’s agent says the buyer needs a new Settlement Date because her lender has been slow in approving her loan.  My seller wants to sell his house to the buyer but he has a back-up contract in place and is a little reluctant to give the first buyer another 7 days after a new Settlement Date to complete the purchase. If he agrees to a new Settlement Date, does the 7-day permitted delay period apply?

ANSWER: Yes, according to paragraph 12 of the Offer to Purchase and Contract (Form 2-T).  However, the optional checkbox in the “Settlement Date” section of the Agreement to Amend Contract (Form 4-T) allows the parties to agree to a shortened delay period following the new Settlement Date.  If the new box is checked, the delaying party will have 4 days, rather than 7 days, following the new Settlement Date, to complete Settlement and Closing.

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