Importance of Contract Deadlines

Importance of Contract Deadlines

Whether you are a buyer or a seller on a contract, you must know the importance of the deadlines of the contract. So most importantly, all of the deadlines of the contract are calendar days, not business days, so that actually shrinks it, the days. Be very careful with that. Because any real estate contract, time is the essence of the contract.

The deadlines, the times are very important. Now the first one is the escrow deadline. If nothing is filled up, the first escrow deadline is three days.  Be mindful of that. If you fail to put the escrow within the three days, you may lose the contract.

Number two is the inspection deadline. Now, what happens? Suppose you have  ten-day or seven days and you know right now because of the way the market is, sellers are getting multiple offers, maybe sometimes  it's five days. If you have seven days for the inspection? And you did the inspection, you let the seller know, or maybe seller and buyer negotiating some items from the inspection. This is the buyer's responsibility, before the last day of the inspection contingency, they have to send an addendum in writing, not just email or text message and addendum asking the repairs they want. You're giving a written addendum to the seller.

Also, send a cancellation of the contract. So the seller can take either or. Then the seller may say, let's extend the contingency time because we may need some more time to negotiate or maybe need some repair estimates & so on. But you must do that to save your deposit. Then the other one is the financing contingency. And that is the loan approval contingency. I saw many times a lot of mortgage brokers forget to give that. So this is your realtor's duty to check with the lender and get the loan approval, the loan commitment letter before the end of that time period. Because what happens if we as a buyer's realtor or you buyer if you don't give it to the seller, you lose that opportunity.

Now, after that, anything happens, with financing the ball will be on seller's court because you already lost that opportunity for the financing contingency means now you must close.

So don't put your deposit in trouble. These are the most important timelines other than the closing date. So hopefully this information is going to help you to follow through the contract next time. If you have any questions, ask me and leave a comment. I will be glad to reach out to you.