SAY WHATTTTTT???? Time is of the Essence????!!!!

TIME IS OF THE ESSENCE

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In this real estate market, how can any contract contain this clause?! There are soooo many factors now: short sales: take forever!; foreclosures: another timing issue; lenders want so much now. Especially from self-employed borrowers.

“Time is of the Essence” is a clause in a contract/purchase and sales agreement, which states the time and date of the closing is imperative. If the time and date are not met, there is a liability for cancellation. If the cancellation is due to a title issue, there is usually no penalty, but outside of a title issue, penalties can be assessed and it is usually targeted to the buyer.

So, when I received a call today from a realtor stating the closing is to take place on the home October 15 and time is of the essence for a property needing a 203k loan, I said , I have not seen this clause in over 2 years. The broker agreed and is calling the listing broker to “discuss”.

I hope the market does recover so well, and the lenders feel good about lending again, that this clause will be ok to see again!