Time is of the essence
A contract phrase making every deadline strict. Miss a deadline and the other side can call default, even by a day. Most residential contracts include it.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
With this phrase in the contract, a deadline missed by a day is a breach. Most residential contracts include it, and it is why an extension has to be signed before the date rather than agreed after.
Part 2 of 4
A simple example
The contract says time is of the essence and closing is May 30. The buyer's lender is ready June 2. Without a signed extension, the buyer missed closing.
| What happens | With time of the essence |
|---|---|
| Closing slips three days with a signed extension | Fine; the new date is the deadline now |
| Closing slips three days with nothing signed | A breach the other side can act on, even over three days |
| Both sides quietly carry on and close June 2 | Often fine in practice, but the right to call default was there |
The phrase makes dates strict. The fix for a slipping date is a signed extension, before the date.
Part 3 of 4
What people get wrong
That a day or two never matters. With this clause it can, and the side that missed the date is the one exposed.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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