⏳ What Is the Executory Period in a Real Estate Contract?

The Executory Period is the phase in a real estate transaction between contract ratification and closing. During this time, both the buyer and seller must complete their remaining obligations—such as inspections, financing, repairs, and title work—before the property officially transfers ownership.

How the Executory Period Works

Once a sales contract is fully signed (executed) and delivered (ratified), the transaction enters the executory period. This period continues until closing, when all terms have been satisfied.

Typical obligations during the executory period include:

  • Buyer inspections – general inspection, termite, radon, sewer, etc.
  • Appraisal – required by the lender to confirm value.
  • Financing steps – underwriting, verification, final loan approval.
  • Title search & insurance – verifying clear title before closing.
  • Repairs or seller credits – addressing items found in inspection.
  • HOA/condo document review – if applicable.
  • Final walkthrough – typically 24–48 hours before closing.

The period ends at closing when all obligations are met and the deed transfers to the buyer.

Why the Executory Period Matters

Benefits for Buyers:

  • Time to complete inspections and due diligence.
  • Opportunity to secure financing and appraisal.
  • Legal protections through contingencies.
  • Chance to negotiate repairs or credits.

Benefits for Sellers:

  • Provides a structured timeline toward closing.
  • Ensures the buyer performs required steps on schedule.
  • Allows time to complete agreed repairs or documentation.
  • Reduces surprises by clearly defining responsibilities.

Example of the Executory Period

A typical executory timeline looks like this:

  • The contract is signed and delivered → ratified.
  • The buyer completes inspections.
  • The lender orders the appraisal.
  • The seller completes negotiated repairs.
  • The buyer secures final loan approval.
  • Both parties sign closing documents.
  • The deed transfers → closing.

The period between ratification and closing is the executory period.

Why the Executory Period Matters for FSBO Sellers

FSBO sellers are responsible for managing buyer communication, repairs, deadlines, and paperwork without an agent. Understanding the executory period helps avoid delays or failed closings.

  • Ensures contingencies are handled properly and on time.
  • Helps track buyer performance (financing, inspections, appraisal).
  • Clarifies repair responsibilities and documentation needs.
  • Reduces risk of misunderstandings or contract disputes.

When listing with Flat Fee MLS through Brokerless, sellers receive support to stay compliant throughout the executory period.

Frequently Asked Questions

How long is the executory period?
Typically 20–45 days, but it depends on financing, repairs, and contract deadlines.

Can a buyer back out during the executory period?
Yes — if a contingency applies (inspection, appraisal, financing, HOA review, etc.).

Can a seller cancel during the executory period?
Only if the buyer fails to meet deadlines or violates the contract terms.

What ends the executory period?
Closing day, when all obligations are fulfilled and the deed transfers.