In part 2 of our 10 part series on the new FARBAR AS IS Residential Contract for Sale and Purchase of Real Estate we look at changes to issues dealing with the closing, closing date, and extensions of the closing date.
- Closing: Closing Date: Paragraph 4 was retitled Closing, Closing Date to help people locate this information in one paragraph and understand the elements of closing. In addition, the definition of closing includes the closing agent's receipt and collection of all funds required by the contract (meaning funds are actually and finally collected and deposited in Closing Agent's account), along with the language from the previous contract that all documents be furnished at closing.
- Extension of Closing: This revision to Paragraph 5 added language which limits the extension of the closing date provided for in this paragraph to a maximum of 7 days (instead of up to 10 days) to meet Consumer Financial Protection Bureau (CFPB) delivery requirements if all the following apply to the contract and loan status: (i) paragraph 8(b) (financing) was selected; and (ii) loan approval was obtained; and (iii) underwriting is complete. Previous language included item (i) but not items (ii) and (iii). Previously, this often resulted in a buyer believing an extension was merited even when the reason funding was not available at closing was unrelated to CFPB delivery requirements.