What action should a real estate agent take if the buyer and seller agree to extend the closing date?

When a buyer and seller agree to extend the closing date, the most appropriate action for the real estate agent is to prepare an addendum and have both parties agree to the change in writing. This is crucial because extending the closing date alters the original contract terms, and it's important to document this change formally to protect both parties' interests and ensure that everyone is on the same page.

Creating an addendum allows for a clear and concise record of the new terms agreed upon, which can help avoid potential disputes in the future. It's essential in real estate transactions to maintain clear documentation of any changes to the agreement.

Other options, such as simply having the buyer and seller shake hands or writing a completely new contract, are not advisable because they may lead to misunderstandings or a lack of formal agreement. Additionally, the notion that time is of the essence does not preclude the possibility of altering closing dates as long as both parties consent to the change in writing. Therefore, preparing an addendum is the best practice in such situations.