What Is FTD? - Everything You Need To Know

In the context of a home sale, Failure to Deliver (FTD) typically refers to a party not fulfilling a contractual obligation by a deadline — not a stock market term. Here’s what it can mean during a real estate transaction:

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⚠️ Failure to Deliver in a Home Sale: Definition

Failure to deliver means one party (buyer or seller) does not meet a requirement outlined in the purchase and sale agreement (P&S) — such as delivering documents, funds, possession, or repairs by the agreed-upon time.

🔑 Examples of “Failure to Deliver” Situations

🧾 By the Buyer:

Not delivering earnest money deposit within the required timeframe.
Failing to provide loan approval or proof of funds.
Missing the closing funds (via wire transfer or cashier’s check).
Not submitting required documents for the lender or title company.
Skipping the final walkthrough or not showing up at closing.

🏠 By the Seller:

Failing to complete agreed-upon repairs before closing.
Not delivering clear title or resolving liens or encumbrances.
Not vacating the property by the agreed possession date.
Refusing to hand over keys, garage remotes, or appliance warranties.
Missing required signatures or documents at closing.

📜 Legal & Contract Consequences

If a party fails to deliver as agreed, the other side may:

Terminate the contract (especially if it violates a contingency).
Keep the earnest money deposit (seller remedy).
Sue for specific performance or damages (more common in higher-stakes deals).
Request an addendum for more time (if both sides agree).

✅ How to Avoid FTD in a Home Sale

Use a transaction timeline to stay on top of deadlines.
Communicate regularly with your agent, lender, and escrow officer.
Read the P&S contract carefully — especially around contingency and closing dates.
Confirm all documents and funds are submitted early, not at the last minute.

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