Contract and Closing terms

[Doron Rice]

Hi,

I am negotiating with a bank (seller) the closing terms of an REO property. The bank (seller) wants to add to the contract that the closing date would be 45 after the execution of the contract and for every day following the 45 days I will be penalized by $50 if the closing is delayed. my lender believe that the closing can be done within this time frame but I am hesitant to be in this position. Is it common to add this penalization note into a contract?

Thanks,