By Ric Giumenta on Wednesday, 25 November 2020
Category: Ric's Blog

Time Is Of The Essence

The most common contract used in Florida is the Florida Realtors/Florida BAR Residential Sale and Purchase contract.

According to the contract “Time is of the Essence”. Now, whether you use the “As-Is” or the “Standard” contract the provision for “Time is of the Essence” is the same. So, what does it mean? It means that the contract calls for specific dates to perform the actions in the contract or there could be consequences. When I say specific, I mean “drop dead dates”!

For instance, if the closing date states November 1, then that is when the closing happens. Yes, even if you put “on or before” in front of the date! If you put “on or before” in front of the date, you still need both buyer and seller signatures to move it up! You are falsely setting the customers up for disappointment by allowing them to think that it may be moved up, because it needs both parties to agree in writing to do so. It should not be moved up verbally. All things must be in writing to be enforceable according to the Statute of Frauds. So, don’t bother to put “on or before” in the contact because it is meaningless. Just use specific dates.

If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice.

Make good choices. See you next time!

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