So, your closing date has come and gone…but you didn’t close, and now you’re wondering what the seller might do next.
Buyers can miss the closing date for all kinds of reasons. Maybe your loan was delayed, the home inspection uncovered something unexpected, or there was a breakdown in communication. In some cases, buyers simply aren't ready to close, even though the purchase agreement clearly set that deadline.
No matter the reason, missing the closing date is a serious issue. It's not just about skipping an appointment; it means the sale didn’t go through as planned, and the seller may be facing extra costs, stress, or delays.
If the delay wasn’t properly handled in the contract — that is, if the contract didn’t explicitly give you permission to extend the closing date as the buyer — you could face penalties. Below are five possible penalties for not closing on time and what you need to know about how they work.
5 penalties for buyers who miss the closing date
If you’re unable to close on time, the seller may have the right to take action. This is especially true if they tried to work with you and things still fell through.
Even if the delay wasn’t your fault, you could still be responsible for certain costs or consequences. Here are five penalties buyers can face when they miss the closing date, depending on what the contract says.
| Penalty | What it is | Why sellers use it | What you should know |
|---|---|---|---|
| Daily fee (per diem) | A daily late fee (usually equal to 1/30 of the seller’s mortgage each day) you may owe the seller until the sale is finalized | To cover seller’s mortgage, insurance, and housing costs caused by the delay | Usually written into the contract; can add up quickly |
| Losing your earnest money | You could lose your deposit if you miss the deadline without a valid reason | To compensate seller for wasted time, missed opportunities, or added stress | If you have a contingency in the contract (like for financing or appraisal), you may be protected |
| The seller cancels the deal | Seller may find a new buyer | To move on quickly, especially if you’ve gone silent or delayed too long | Not all contracts allow this; some sellers may be open to an extension |
| The seller sues for damages | Seller takes legal action to recover costs | To recoup money they lost (extra mortgage payments; storage fees) | Lawsuits are rare but possible; if you’re worried, talk to your agent or a real estate attorney |
| “Time of the essence” clause | A contract term that makes the deadline strict and legally binding | To keep the deal on schedule and limit last-minute surprises or excuses | Many states require this in the contract |
1. You could face a per diem fee
If you don’t close on time, the seller may be stuck paying extra mortgage payments, insurance, taxes, and utility bills.
That’s where per diem fees come in. This is a daily charge that helps cover the seller’s added costs while they wait for you to close.
This fee is often written into the contract, and it’s usually calculated by taking the seller’s monthly housing costs and dividing it by 30. For example, if they pay $2,400 per month, your delay might cost you about $80 per day.
Even if it’s not spelled out ahead of time, the seller might try to negotiate a daily rate after the fact, especially if the delay drags on. Your lender might also charge extra fees if your loan’s interest rate lock expires, which makes delays even more expensive.
How to fix it: Communicate early and ask for a written extension as soon as you know you’ll need it.
2. You might forfeit your earnest money deposit
Most buyers put down earnest money. This is a deposit held in escrow to show that you’re serious about buying. It usually goes toward your down payment if everything goes smoothly.
But if you miss the closing date and don’t have a valid reason (like a contingency for financing or appraisal delays), the seller may be able to keep your deposit. That money is meant to compensate them for lost time, stress, and the chance they could have sold to someone else.
For example, if you put down $5,000 in earnest money and didn’t close on time or get an extension, that $5,000 could be gone.
How to fix it: Review your contract carefully to see what contingencies are in place. If something’s taking longer than expected, let your agent and the seller know right away and ask for a formal extension before the closing date passes.
3. The seller can cancel the deal
In many cases, missing the closing date means breaking (breaching) the contract. If you breach contract, that can give the seller the right to walk away from the sale entirely.
This doesn’t always happen, but if you’ve gone silent or delayed the process more than once, the seller might decide to cancel. They may even have another offer lined up. And if you’re the one backing out, there could still be consequences, like losing your earnest money or being asked to pay for costs they took on while waiting.
How to fix it: Stay in close communication and respond quickly to seller requests. If you're struggling to meet the deadline, ask your agent to help negotiate an extension or an addendum before things fall apart.
4. The seller can sue you for damages
If your delay causes the seller to lose money — like needing to make extra mortgage payments or pay for storage or moving costs — they might try to take legal action to recover what they lost. In other words, they may try to get you to foot the bill as the buyer.
This usually only happens in extreme cases, but it’s not impossible. A court could order you to pay for actual damages, or in rare cases, even force you to complete the sale (called “specific performance”.
How to fix it: If your deal is at serious risk of falling through, get help from your agent or a real estate attorney as soon as possible. They can help you understand your options and possibly negotiate a solution before it escalates.
5. “Time is of the essence” clause can limit delays
Some contracts include a “time is of the essence” clause. In most states, this clause is included in writing within the purchase agreement or contract automatically. In others, it’s implicit — not in writing, but still legally binding.
This clause means the closing date is fully set in stone — unless it’s contractually amended or moved — and there can be consequences for both buyers and sellers if they miss it.
If this clause is in your agreement, even being one day late could void the deal. Verbal promises or casual “we’ll push it back” conversations won’t override the written contract.
How to fix it: Ask your agent whether this clause applies in your contract or state. If it does, and you think you’ll need more time to close, don’t just let the closing date come and go and assume everything will be okay. You’ll need to make sure you request that time in writing (such as with a written amendment to your purchase agreement).
Be aware that when you request an extension in writing and the seller approves and signs off, that doesn’t just void your original “time is of the essence” clause. The “time” has been moved to a later date. However, it is still “of the essence.”
Preventing delays: What buyers can do
In most cases, you can only delay closing if the seller agrees to it in writing. Thankfully, most delays are preventable with a little planning.
Our top tips for preventing delays:
- Unless you’re paying cash, don’t start house-hunting until you have your pre-approval from your lender and the lender has every document they need.
- Get to know your loan like the back of your hand: What kind of homes won’t they lend on? What would stop your lender in their tracks? (For example, is your lender fine with financing a house with foundation or roof issues?)
- Know what types of financing the seller will accept before you even schedule that showing: Sure, you could fall in love with a house whose seller won’t accept your USDA loan, but then you’ll have to spend extra days — or even weeks — reapplying for a conventional loan. It may just not be worth the delays or the heartache.
Even with preparation, things happen. Below is a list of the most common reasons buyers get delayed, what causes those delays, and how to avoid them — plus, how to avoid it.
Common closing delays and how to prevent them
| What can cause delays | Why it happens | How to prevent it |
|---|---|---|
| Missing lender documents | You received an accepted offer on a home before the lender has all your paperwork | Get a document checklist from your lender, and make sure you’ve submitted everything they need before you house-hunt |
| Changes to your credit or job | After getting pre-approved, you took out a new loan or line of credit (or had a change in employment), and now your lender needs to re-run your application to make sure you still qualify | Once you’re preapproved for a mortgage, never open new lines of any sort of credit — even a credit card; ask your employer to wait on any job changes until your home purchase is final |
| Switching loan types or lenders mid-deal | Your seller won’t accept your financing, so you have to switch mid-transaction or back out | Before going to view a home, double and triple-check that the homeseller will accept your of financing — for example, some sellers will only accept cash or conventional loans |
| Loan requirements tied to property condition | Your offer has been accepted and the inspection completed — then the lender discovers something about the home’s condition that must be repaired before the loan can close | Have a conversation with your lender about what is a “deal breaker” for them. (ie., FHA won’t lend on a home with peeling paint); then, exclude homes that have those “deal breakers” from your search, or change lenders or loan types |
| Home not eligible for your loan type | You find out after your offer is accepted that the seller won’t accept your type of financing, and now you want to switch mid-transaction | Confirm upfront that the seller accepts your loan type — many listings note this, and your agent can double-check before you tour or submit an offer |
| Repair negotiations after inspection | The inspection reveals problems, and you want time to get quotes or negotiate repairs | Schedule the inspection as early as possible once your offer is accepted, and if issues come up that you want repaired, over-communicate; situations like this often require closings to be moved back, but it’s also not usually a big deal |
| Title, real estate brokerage, appraisal, or closing team delays | The title company or appraiser is backed up, or someone drops the ball on paperwork | Shop around where you can; these delays can be prevented by ensuring you choose professionals with a reputation of closing on time |
| Buyer faces personal issues | Medical issues, accidents, and acts of nature can cause delays | It’s hard to prevent delays caused by personal issues, but stay organized, practice good time management, and communicate |
What to do if you need to delay closing or need more time
If you already know you’re not going to close on time, don’t panic…but don’t ignore it, either. The most important thing you can do is communicate early and clearly with your agent and the seller.
Here are a few ways to officially adjust your closing timeline:
- Add an amendment to the purchase agreement. This is the most common fix. It’s a formal change to the contract that pushes the closing date out to a new one, agreed to by both parties.
- Use the “additional terms” or “special provisions” section of your contract (if you’re still early in the process) to include closing flexibility. This happens before you submit your offer (AKA a “purchase agreement” in many states) — you write it into the document.
- Loop in your lender and closing team. Sometimes, certain things that may normally cause a delay can actually be sped up or expedited, such as a lender’s underwriting process.
What you don’t want to do is rely on a verbal “It’s fine” from the seller. Real estate contracts are legal documents. If it’s not in writing, it doesn’t protect you.
Also remember: it’s not just the seller who’s affected. Title companies, real estate agents, loan officers, and even contractors may be involved, and many are paid only when the deal closes. The more notice you give, the smoother things go for everyone.
How long can a buyer delay closing?
There’s actually no universal rule. In theory — as long as buyer and seller are in agreement — closings can be delayed indefinitely (at least, in most states).
That said, some states’ contracts provide an automatic grace period of 1 to 3 days. In other situations, buyers who need to delay closing should expect to only be allowed a maximum of 7 to 14 days or so before penalties are incurred.
The main thing to remember: Communication, communication, communication. Don’t be lax or embarrassed about talking to your agent or the seller about why you might need to push back the closing date.
Work with a Clever Partner Agent
Most closing delays can be avoided with the right planning, communication, and expert guidance. A Clever Partner Agent will help you stay on track from day one and help keep your paperwork, deadlines, and expectations aligned so you don’t run into surprises or penalties down the line.
And if a delay does happen, your agent can often negotiate a reasonable solution that keeps the deal alive.
Avoid penalties by connecting with a top local agent today. You may even qualify for Clever Cash Back after closing!