What happens if you miss a contingency deadline?

If a contingency deadline passes and nobody acts, the contract decides what happens. On many forms the buyer is treated as having waived the contingency and loses the right to cancel over that issue, and possibly the earnest money. On others, the contingency stays open until the seller sends a demand to perform. Read the clause before anyone reacts.

More on this topic: Contract deadlines by state, every guide in one place.

This guide explains the three ways purchase contracts usually handle a missed contingency date, what to do in the first hour after you notice, and how to stop it happening on the next file. It sits alongside our overview of the deadlines in a purchase contract, and with Closingbird's deadline tracking, which reminds each owner before a contingency date arrives.

The three ways contracts handle a missed date

There's no national rule. Each state's association form, and every negotiated addendum, says what silence means. Most fall into one of these patterns:

As an example of the second pattern, the California Association of REALTORS describes a system where contingencies are removed in writing, and the seller can serve a notice to the buyer to perform once the period ends. Other states' forms work the other way round. Check your state's contract, and the specific paragraph, before you tell anyone what happens next.

Which contingencies this applies to

The same question comes up for every contingency with a date attached:

• Inspection or due diligence. The most common miss, because the buyer has to do something (deliver an objection or repair request) rather than wait for something.
• Appraisal. Some forms give the buyer a set number of days to object to a low value. See our guide to the appraisal gap.
• Financing or loan approval. The buyer may need to deliver a notice, sometimes with a lender's letter, before the date to keep the right to cancel.
• Title review. Often counted from receipt of the title commitment rather than acceptance. See how to read a title commitment.
• HOA documents, seller disclosures and the sale of the buyer's home, where the contract includes them.

What to do in the first hour

When you realise a date has passed, resist the urge to send a quick "we're still fine, right?" email. Work through this in order:

1. Confirm the deadline really passed. Recount it from the contract: the start date, calendar or business days, whether weekends roll forward, and the cut-off time. A surprising number of "missed" dates turn out to be the next day. Our guide to calendar days vs business days covers the counting.
2. Read the contingency clause and the default clause. What does the form say about silence? Is there a cure period, a notice requirement, or a time-is-of-the-essence clause?
3. Check for anything already signed that changes the date: an extension, an amendment, a counter-offer term.
4. Tell the agent and the broker straight away, with the timeline written down: the deadline, how it was counted, what was or wasn't delivered and when.
5. Don't send anything that admits or waives anything until the agent, broker or an attorney has decided the next step.
6. If both sides agree, get it in writing. A late request the other side is happy to accept should become a signed extension or amendment, not a friendly email.

A missed deadline is a contract question, not a scheduling question. The answer is in the paragraph, not in anyone's memory of what was agreed.

Is the earnest money at risk?

Sometimes. If the buyer loses a contingency and then can't or won't close, the seller may claim the deposit under the contract's default terms. Whether they can, and how the escrow holder releases it, depends on the form and on state law. Escrow and title companies usually won't release disputed funds without both parties' written instructions or a court order. That's a question for the agents and, where the money matters, an attorney.

How to make sure it doesn't happen again

• Write every deadline down on day one, with the paragraph it came from and how it's counted.
• Name the owner of each one. The inspection objection belongs to the buyer's agent; loan approval belongs to the lender; the coordinator watches both.
• Remind two or three days before, not on the day, so there's time to negotiate or extend.
• Close each contingency out in writing: a signed removal, an objection resolution, or a termination. Mark it done only when the paper is on file.
• Recalculate after every signed change, so an extension on one date doesn't leave the others wrong.

Closingbird's deadline tracking keeps every contingency date on the file with its source and counting rule, and reminds each owner before the date. When a date is met or waived, you mark it met or waived so the file shows exactly where each contingency stands.

This guide is general information, not legal advice. Contract forms and state law differ; check your state's contract and ask a broker or real estate attorney about a specific file.

Frequently asked questions

Can the buyer still cancel after the inspection period ends?

It depends on the form. Where silence counts as acceptance, the buyer usually can't cancel over inspection issues once the period ends. Where contingencies must be removed in writing, the right may continue until the buyer removes it or the seller serves a demand to perform.

Can a deadline be extended after it has passed?

Often yes, if both parties agree and sign an extension or amendment. A verbal agreement or an email saying "no problem" may not be enough. Put the new date, and which deadline it changes, in a signed document.

Does a missed contingency deadline cancel the contract?

Usually not by itself. More often the buyer loses a protection, or the seller gains a right to give notice and cancel. A few forms do terminate automatically in some situations, so read the clause.

Who is responsible for tracking contingency deadlines?

The parties are bound by them, and their agents are normally expected to manage them. Many agents use a transaction coordinator to track the dates and send reminders, but the agent and broker stay responsible to the client.