I’m feeling the need to blog about this today due to a recurring issue that we’ve been dealing with on recent transactions.  This issue is about adhering to the deadlines in a contract of sale.

Why is this important?  Because it can mean the difference between asking for a home inspection in the contract and actually being allowed to have one performed.  It can mean the difference between being able to ask for repairs to be made, and not being able to ask for those repairs.  It can mean the difference between having a contract in full force and effect, or being in default of the contract and being made to deal with the issues that arise from that situation.

The stakes are very high when deadlines in the contract are missed, and yet it is a simple situation to monitor – count the days for the deadlines, put them on a calendar, and check your calendar on a regular basis.  In fact, the moment our clients have a ratified contract, we complete a checklist for all of the items that must be completed and note when those items are due.  We put those items on our calendars and we create a list of those deadlines for our clients.  We ask our clients to put the deadlines on their calendars and hang the list on the refrigerator.  That’s how important meeting contract deadlines are to us.

So, who should be monitoring these days?  Isn’t that the responsibility of the realtor?  It is the responsibility of the realtors, the sellers, and the buyers – all parties involved in the contract – to know the deadlines in a contract and to make certain they are met.  In fact, the Maryland Association of Realtors Residential Contract of Sale states, “Time is of the essence of this contract.  The failure of Seller or Buyer to perform any act as provided in this Contract by a prescribed date or within a prescribed time period shall be a default under this Contract…”

When counting the number of days in a contract, it is important to know that all days count including weekends and holidays.  Day one begins on the day following the date of contract ratification, so if the Date of Contract Acceptance is August 10^th, August 11^th is day one.  Using this scenario, if you have a home inspection addendum in the contract that states the inspection and request for repairs along with a copy of the report be delivered to the seller within 10 days from the Date of Contract Acceptance, that means that the inspection and repairs request with report must be delivered to the seller by August 20^th.

Simply said, counting the days and meeting the deadlines is crucial is getting from sale to settlement.

By the way, the Maryland State Fair is being held August 22^nd – September 1^st, and if you’d like to go for free, CLICK HERE to enter our drawing.

Wishing you peace, love, and the home of your dreams,
Jeri