Can an extension be verbal?

Generally no. Material contract amendments are best reduced to writing and signed to avoid disagreements; some statutes of frauds can require written modifications in certain contexts.

Is consideration required?

Many jurisdictions enforce written modifications without new consideration if parties sign; however, providing consideration reduces the risk of a later defense that the amendment lacked mutual exchange.

Can I extend multiple times?

Yes, multiple agreed extensions are common, but each should be documented and reference prior amendments to maintain clear chronology and prevent conflicting terms.

Is notarization required?

Not usually for simple contract amendments, but recording an amendment may trigger local recording or notarization requirements; verify with county recorder or counsel.

Can the extension be e-signed?

Yes. Under ESIGN (15 U.S.C. §7001) and UETA, electronic signatures are enforceable, provided parties consent to electronic transactions and the record is retained.

How do I revoke or cancel an extension?

Revocation requires mutual agreement or a contractual right of termination; unilateral revocation can expose parties to breach claims unless the original contract permits it.

Electronic Signature
Templates
Legal
Extension of Due Diligence Period

Extension of Due Diligence Period

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EXTENSION OF DUE DILIGENCE PERIOD

This Extension of Due Diligence Period ("Extension") is made as of Effective Date: by and between Buyer Name: and Seller Name: . Reference is made to that certain agreement titled dated by and between the parties (the "Original Agreement").

RECITALS

WHEREAS, pursuant to the Original Agreement Buyer was granted a period to conduct due diligence concerning the Target or Assets described as: (the "Due Diligence");

WHEREAS, the Original Agreement established a Due Diligence End Date of ; and

WHEREAS, the parties desire to extend the Due Diligence End Date on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. EXTENSION OF DUE DILIGENCE PERIOD

1.1 Extension. The Due Diligence End Date set forth in the Original Agreement is hereby extended from to a new Due Diligence End Date of . Alternatively, this extension may be measured as an additional day(s) added to the original period, whichever method is applicable under the Original Agreement.

1.2 Scope. During the extended period Buyer shall continue to have the same rights to access information, inspect physical premises, and conduct tests as provided in the Original Agreement. Seller shall cooperate in good faith and provide reasonable access to information and locations reasonably necessary for Buyer’s due diligence investigations.

2. EFFECT ON ORIGINAL AGREEMENT

2.1 Limited Amendment. Except as expressly set forth in this Extension, the Original Agreement and all of its terms, conditions, representations and warranties remain unmodified and in full force and effect. All references in the Original Agreement to the Due Diligence End Date shall be deemed to refer to the new date established by this Extension.

2.2 No Acceleration. No party shall be deemed to have waived any right to extend, terminate, or proceed to Closing except as expressly provided in this Extension or as otherwise provided in the Original Agreement.

3. REPRESENTATIONS AND AUTHORITY

Each party represents and warrants to the other that (a) it has full power and authority to enter into this Extension, (b) the execution and delivery of this Extension and the performance of its obligations hereunder have been duly authorized by all necessary corporate or organizational action, and (c) this Extension constitutes a legal, valid and binding obligation enforceable against it in accordance with its terms.

4. NO WAIVER; NO OTHER AMENDMENTS

4.1 No Waiver. Neither party’s delay or failure to exercise any right or remedy under the Original Agreement or this Extension shall operate as a waiver of such right or remedy. Any waiver must be in a writing signed by the party granting the waiver.

4.2 No Other Amendments. Except as expressly amended by this Extension, no other term of the Original Agreement is altered by this Extension. This Extension may be amended only by a written instrument executed by both parties.

5. NOTICES

Notices to Buyer:

Buyer Notice Address Buyer Notice Contact

Notices to Seller:

Seller Notice Address Seller Notice Contact

Any notice required or permitted to be given under this Extension shall be given in accordance with the notice provisions of the Original Agreement or, if none, delivered to the addresses set forth above and shall be effective upon receipt.

6. GOVERNING LAW; VENUE

This Extension shall be governed by and construed in accordance with the laws of the State of , without regard to conflicts of law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that State for any dispute arising out of or relating to this Extension.

7. ENTIRE AGREEMENT; SEVERABILITY

7.1 Entire Agreement. This Extension, together with the Original Agreement, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings, negotiations and agreements, whether written or oral, relating to such subject matter.

7.2 Severability. If any provision of this Extension is held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired thereby.

8. COUNTERPARTS; EXECUTION

This Extension may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be binding for all purposes.

9. ADDITIONAL PROVISIONS

Any capitalized terms used but not defined in this Extension shall have the meanings ascribed to them in the Original Agreement. The parties agree to execute and deliver such further instruments and do such further acts as may be reasonably required to carry out the purposes and intent of this Extension.

Reason for Extension (summary)

Buyer Printed Name:

By:

Date:

Seller Printed Name:

By:

Date:

What an Extension of Due Diligence Period Does

An Extension of Due Diligence Period is a written amendment to an existing contract—commonly a real estate purchase agreement or acquisition term sheet—that postpones the deadline for one or more diligence activities. It identifies the parties, the original deadline, the new deadline or extension length, and any new consideration or conditions. The document preserves the contract framework while allowing additional time for inspections, title searches, financing, or regulatory clearances without terminating the underlying agreement.

Why parties use an extension instead of terminating

Extending due diligence preserves an existing deal framework while giving time to resolve contingencies, secure financing, or obtain approvals. It reduces the need to renegotiate core deal terms and can avoid immediate termination penalties.

Typical users and roles involved

In many transactions, closing counsel or an authorized officer executes the extension on behalf of an entity; confirm signing authority in advance.

Real estate brokers and listing agents coordinating timelines and buyer inspections.
Buyers and investor representatives tracking financing contingencies and closing readiness.
Outside counsel and transaction attorneys negotiating amendment language and risk allocation.

Step-by-step: putting an extension in place

Follow a short, auditable sequence to prepare, approve, and execute the amendment to minimize later disputes.

01

Review original terms: Confirm deadlines, notice provisions, and required approvals.
02

Draft amendment: State new deadline, scope, and any consideration clearly.
03

Obtain approvals: Get internal and third-party consents required by the contract.
04

Execute and distribute: Have authorized signers sign and circulate final executed copies.

Typical digital workflow for completing an extension

A digital workflow speeds execution and preserves an audit trail; steps map to document control and signature capture.

Upload document: Add the draft extension to the signing platform as a PDF or DOCX.
Place fields: Insert signature, date, and required data fields for each party.
Send to signers: Route in order or send simultaneous signing links via email.
Store executed copy: Save signed PDF with audit trail for retention and future reference.

Essential elements every professional extension should include

A concise amendment limits ambiguity. Include clear references to the original agreement, the precise extension action, and any new obligations or concessions.

Reference to original

Identify the contract by title, date, and parties so the extension is unambiguously linked to the correct agreement and avoids conflicting interpretations.

New deadline

State the new due diligence cutoff using MM/DD/YYYY and specify whether the time includes business days or calendar days.

Scope of extension

Clarify which diligence items are extended (inspections, financing, title) and whether other deadlines remain unchanged.

Consideration details

If money or credits are exchanged, state amounts and payment timing; if none, include a no-consideration clause.

Conflict clause

State that, except as amended, the original agreement remains in full force to avoid unintended terminations or superceding terms.

Execution authority

Include signer names and titles, and confirm that signers have authority to bind their entities to avoid later challenges.

Required identifying information and key data fields

Buyer Name: Full legal name

Seller Name: Full legal name

Original Date: MM/DD/YYYY

Extended Deadline: MM/DD/YYYY

Extension Term: Number of days

Consideration: Dollar amount or 'None'

Digital signing considerations and platform requirements

Ensure the chosen provider meets required compliance standards (ESIGN/UETA, HIPAA if applicable) and preserves an auditable certificate of completion.

File formats: PDF and DOCX supported
Integrations: CRM and cloud storage integrations
Authentication: Email, SMS, or stronger 2FA

Recommended configuration for an e-sign workflow

Set up simple but secure signing steps to reduce signer friction while maintaining a defensible audit trail.

Field	Configuration
Authentication Method	Email link or SMS code verification
Date Field Format	MM/DD/YYYY enforced via validation
Conditional Fields	Show only if consideration is present
Audit Trail	Enable IP, timestamp, and action logging

Practical tips to avoid disputes and delays

Adopt a consistent process for producing, approving, and archiving extensions to reduce ambiguity and speed approvals.

Tie to the original contract

Reference the agreement by full title and date, and quote the exact clause being amended so the extension cannot be misapplied or later disputed.

Be explicit about days

Specify whether extensions use calendar days or business days and account for holidays or bank closings to prevent inadvertent deadline slips.

Document consideration clearly

If the extension is conditioned on payment or credit, state the amount, payment method, and timing to prevent later enforcement defenses.

Use auditable e-signature methods

Adopt an e-sign workflow that records signer identity, timestamps, and IP addresses and retains a certificate of completion for evidentiary support.

Common pitfalls when preparing an extension

Vague deadline language that omits time-of-day or business day rules, causing conflicting interpretations during enforcement.
Failure to obtain required third-party consents (lender or vendor), which can render the extension ineffective or breach the original agreement.
Mismatched party names or titles between the extension and original agreement, creating questions about who is bound.
Not documenting consideration or stating 'for good and valuable consideration' without specifics, which can impede enforceability in some jurisdictions.

Potential legal risks if an extension is incorrect

Missed Deadline: Loss of contingency rights

Unenforceable Amendment: Contract may revert to original terms

Breach Liability: Damages or specific performance claims

Tax Withholding: Incorrect reporting consequences

Recording Errors: Invalid recorded instruments

Authentication Failure: Challenge to signature validity

eSignature platform comparison for executing extensions

Common selection criteria include starting price, trial availability, bulk send support, audit trail, HIPAA compliance, and any envelope or session caps.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about extensions of due diligence period

Answers below address common legal and practical questions encountered when preparing or executing an extension.

Need help? Contact support

Can an extension be verbal?
Generally no. Material contract amendments are best reduced to writing and signed to avoid disagreements; some statutes of frauds can require written modifications in certain contexts.
Is consideration required?
Many jurisdictions enforce written modifications without new consideration if parties sign; however, providing consideration reduces the risk of a later defense that the amendment lacked mutual exchange.
Can I extend multiple times?
Yes, multiple agreed extensions are common, but each should be documented and reference prior amendments to maintain clear chronology and prevent conflicting terms.
Is notarization required?
Not usually for simple contract amendments, but recording an amendment may trigger local recording or notarization requirements; verify with county recorder or counsel.
Can the extension be e-signed?
Yes. Under ESIGN (15 U.S.C. §7001) and UETA, electronic signatures are enforceable, provided parties consent to electronic transactions and the record is retained.
How do I revoke or cancel an extension?
Revocation requires mutual agreement or a contractual right of termination; unilateral revocation can expose parties to breach claims unless the original contract permits it.

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