From the Legal Hotline: How Far in the Future Can the Closing Date of a Contract Be Set?

We’ve been asked if the closing date for a residential contract can be set a year after the execution date. If a residential contract does not close within 180 days (six months) of it being executed, Texas Property Code Sections 5.061 to 5.085 come into effect, adding notice and disclosure requirements that are not contained in the TREC residential contracts. Before setting a closing date for more than six months after the contract’s execution, the parties should consult with an attorney.