As long as contingencies have existed, there have been REALTORs who think deadlines are suggestions. Since when has it been a home seller’s responsibility to extend an appraisal or a financing contingency when a buyer’s lender fails to deliver by the deadline? Never. And still, I hear from licensees who are astonished to have their amendments to extend rejected. I wonder if the agent who expects an automatic extension comprehends the mechanics of the contingency?
If the home buying process is like a journey from here to there, a contingency is an off-ramp, should the traveler decide to quit the trip or go a different direction. Those off-ramps are helpful for the buyer and not so useful for home sellers. As we move along the road from acceptance to close, we eliminate the off-ramp contingencies by satisfaction or by failure to act before the deadline. It’s possible for a contingency favoring the buyer to be desired by the home seller, but it’s unlikely. Whether the contingency is satisfied or becomes moot by the failure of the buyer to take action, it’s typically to the more significant advantage of the home seller to have the contingency gone.
Adding more time for the buyer to decide if they want to exit the transaction at a later date is unwise. Only an agent who doesn’t comprehend the contingency will think it’s prudent for a seller to extend a missed contingency. And don’t tell me it’s necessary to show good faith. Agreeing to a condition included is good faith. It’s good faith for the buyer to make sure they meet the deadline.