Why Shouldn’t Time Always Be Of The Essence?

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I know many readers are anxiously awaiting the final installment on SNDAs. You’ll have to wait (unless you can’t and then email imeislik@meislik.com for an advance copy). One mistaken click of the mouse, and “lo and behold,” here is what was planned for January 16.

Why shouldn’t Time (Always) Be Of the Essence? It sounds so good – make ‘em put up or shut up! After all, the contract was signed four months ago and the lender can’t fund the buyer on the sacred (Time of the Essence) Tuesday; in fact, it can’t fund until Thursday. And, in those four months, another potential buyer has come along who will pay more money. So, says the seller, let’s strictly enforce the Time of the Essence provision in the contract and grab the current buyer’s deposit, sign a new contract with the next buyer, and wait two months or more to close with that buyer (maybe). After all, Time was of the Essence. It was very, very important that the closing take place on that very Tuesday, not two days later – important enough that the seller is willing to wait yet another two months when it might (or might not) close on time. Does that make sense? [Read more…]

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