Home Buying in Paramus>Question Details

Tv5389, Home Buyer in Paramus, NJ

Recently I signed a purchase contract for a house. The closing date states on the contract is on or about

Asked by Tv5389, Paramus, NJ Wed Jul 15, 2009

7/31/09. With the approaching of the closing date, the seller told us they want to push back the closing date for another 10 days. I do not really want to get the closing date pushed back because I got all mortgage done and am ready to move. The house is in New Jersey. Now the seller came back saying per NJ law there is a grace period of closing dates up to 10 days, which gives them the right to postpone the closing date. Is this true? I tried to find this provision online but could not find it so far. Is there any law to protect the buyer in this situation because with mortgage and property tax and everything I may lose another 2000 in these additional 10 days. Please advise.

Help the community by answering this question:


Yes, it true. "on or about" is interpreted as 10 days in either direction. Ask your attorney about your options to recoup your additional costs. At times a buyer can do a "use & occupancy" so they can move in early but not close on the home to help with moving/storage costs. As long as your mortgage extends through the cost date the seller is proposing it is reasonable to postpone under Jersey law.

Camille Miller
1 vote Thank Flag Link Wed Jul 15, 2009
In most cases, this will allow you to "Opt out" of your contract if you and the seller cannot come to an agreement on closing. Taxes and fees will also be responsible by the seller. Make sure your attorney will not charge you more if the date is pushed back. If the seller is serious, they will settle on the agreed date. I do not see many sellers in this market losing a sale over 10 days. Get with your closing attorney or title settlement company ASAP!
0 votes Thank Flag Link Sun Dec 27, 2009
If the contract states the closing date and both parties have agreed then that is the closing date there is no grace period unless both parties agree. Now you can close on the closing date and allow the seller a "use of occupancy" for 10days. This will allow your bank to close the transaction so you dont loose anymore money and you just rent the home for 10days to the seller, for example mortgage payment is $3000mo divide that by 30 so you charge them $100day for 'use of occupancy" hope this helps
0 votes Thank Flag Link Sun Dec 27, 2009
Hi there Tv5389, closing dates are often thought of as targets rather than hard deadlines, however, as you have done plans are made and expenses incurred with change. I hope that you have an attorney assisting you with your transaction - I suggest you consult with him/her to negotiate this request from the seller. I've not heard of a standard grace period - what I have heard of is "time of the essence" which can be called upon if the closing does not occur as agreed and if all contingencies are met (mortgage commitment, inspection...) - I think this is generally a 10 day period.

Talk to your attorney - he/she may be able to negotiate this to a shorter delay, negotiate some of the expense that you will incur as a result of the delay, or perhaps close as scheduled and consider a allowing the seller to remain under a Use and Occupancy in which you are paid a fair rent. However, a clean and final closing is always preferred.

Talk to your attorney for a clear understanding of your options and good luck to you!
Jeannie Feenick
"Unwavering Commitment to Service"
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0 votes Thank Flag Link Thu Jul 16, 2009
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