Let’s take a look at paragraph 5 of the FAR BAR As-Is Contract:
EXTENSION OF CLOSING DATE:
(a) In the event Closing funds from Buyer’s lender(s) are not available on Closing Date due to Consumer Financial Protection Bureau Closing Disclosure delivery requirements (“CFPB Requirements”), if Paragraph 8(b) is checked, Loan Approval has been obtained, and lender’s underwriting is complete, then Closing Date shall be extended for such period necessary to satisfy CFPB Requirements, provided such period shall not exceed 7 days.
(b) If an event constituting “Force Majeure” causes services essential for Closing to be unavailable, including the unavailability of utilities or issuance of hazard, wind, flood or homeowners’ insurance, Closing Date shall be extended as provided in STANDARD G.
First, 5(a) – Basically, IF 1) the Contract is contingent upon Loan Approval, and 2) Loan Approval has been obtained, and 3) The Loan Underwriting is complete (which should be required for Loan Approval but may not be under other terms such as 8(b)(iii)) then the agreed upon Closing Date MAY be extended up to 7 (calendar) days so as to comply with CFPB (Consumer Finance Protection Bureau) requirements. The CFPB requires that the Buyer have 3 BUSINESS days to review the final CD or Closing Disclosure. These are what is referred to as a “precise business day.” A precise business day counts all calendar days except Sundays and legal public holidays listed in 5 U.S.C. 6103(a). So every day, including Saturdays, that is NOT a federal holiday. So, if the Closing Date is say 06/24/25 then the CD must given to the Buyer by the end of the day on 06/20. BUT if the Closing Date is say 06/23/25 then the third day before this is 06/19, Juneteenth, which is a Federal holiday and thus the date would go back another day to 06/18/2025.
Paragraph 5(b) is what we in Florida fear with the so called hurricane extension but it could be any “act of god.” Basically, if one can not get insurance, as the insurers are not writing new policies with a hurricane so close. Or, the court house or the Closing Agent offices are closed then the Closing gets extended under STANDARD G which reads, in part: “All time periods affected by the Force Majeure event, including Closing Date, will be extended a reasonable time up to 7 days after the Force Majeure event no longer prevents performance under this Contract; provided, however, if such Force Majeure event continues to prevent performance under this Contract more than 30 days beyond Closing Date, then either party may terminate this Contract by delivering written notice to the other and the Deposit shall be refunded to Buyer, thereby releasing Buyer and Seller from all further obligations under this Contract.”
