Common use of Delay in Closing Clause in Contracts

Delay in Closing. The loan will not be closed if, at the loan closing, the seller (in a sale transaction) or the bor- rower (in a nonpurchase money loan situation) indicates that construction, repair, or remodeling has been com- menced or completed on the property, or related materials or services have been delivered to or performed on the property within the time limit speci- fied in the affidavit, unless a State Supplement provides otherwise. The closing agent will notify the approval official, who will determine if the work of improvement could result in a lien prior to the agency lien. The State Of- fice will, with the advice and concur- rence of OGC, provide in a State Sup- plement the period of time to be used in completing the affidavit.