A grace period is a period of time past the deadline for fulfilling an obligation during which a penalty that would be imposed for being late is waived. This period of timeframe can range from minutes to a number of days or longer, depending on various factors.

Legally, a grace period is a period of time during which a particular rule exceptionally does not apply, or only partially applies. In some contracts grace periods are built-in to the contract. Leases also normally have a built in grace period. Most mortgages allow approximately 5-7 days for a grace period before your mortgage is considered late. In these situation there there is limited or no negative impact for the extension into the grace period.