The Closing Date On or About and Time is of the Essence

The standard contract of sale has an approximate closing date. The Standard Contract Paragraph 15 states:

Closing Date and Place. Closing shall take place at the office of XYZ Lawyers( Location) at (TIME) o’clock on/or about (DATE) or, upon reasonable notice (by telephone or otherwise) .

In setting the closing date the following factors are determinate and should be negotiated by the parties prior to signing the contract . Both the Seller and Purchaser must be respectful of the needs of the respective parties.

1. Purchaser Needs: i) Mortgage Rate Lock and Mortgage Commitment Expiration Period. ii) Termination of current lease/sale of existing home.iii) remodeling needs/renovation/ contractor needs iv) moving storage needs v) School registration requirements vi) personal requirements of family. vi) Coordination of Moving firms, family friends to assist in the moving in.vii) Availability of Bank Lawyer ( Closing Coordination and Scheduling )viii) Purchaser satisfaction of all mortgage "conditions" to lending. ( Pay stubs, employment proof, bank statements, alimony, etc)

2. Seller Needs: i) Moving requirements new home, relocation especially moving out of state and into a newly constructed home ii) Maintaining the Sale /loss of purchaser due to closing date beyond 60 days of contract risking the purchaser mortgage qualifications. iii) alternative living/moving/storage/rental requirements. iv) Tenant issues v) Removing Title /Closing Impediments/ Governmental Compliance. ( Paragraph 21 of the Standard Contract of Sale)vi) Post Closing Possession Terms in the Contract of Sale ( Contract Rider) vii) Delivery of the Home Broom Clean Empty of all Contents.viii) Delivery to another lender of the Closing Disclosure Statement to finance another home

3. Lawyer Role- One of the most sensitive and difficult communications is having the parties agree to a closing date. The attorney should review the aforementioned "needs" and come to a reasonable time to close. Critical is the word "reasonable" you may not get the anticipated exact date and time for a closing . If the parties discuss in advance their "needs" it will help the lawyers close on a date which is satisfactory to all the parties.

4. Time is of the Essence- Generally Residential Real Estate Contracts don't contain a time is of the essence clause and or terms . Closing occur "on or about " a certain date. When the "on or about" date for a closing is reached it generally gives the parties THIRTY DAYS (30) days to close. The parties must be "ready able and willing " to close for the purchaser that means having the money ( balance due) the seller, and funding for title and closing expenses. For the seller it means presentation of all transfer/tax documents for recording and payment and satisfaction of all mortgages/liens/governmental violations /title impediments, pursuant to the Contract of Sale Terms. A major law firm discusses this mater in detail . They state ' In making its determination, a court may take into account any of the following factors: the nature and object of the contract, the previous conduct of the parties, the presence or absence of good faith, the experience of the parties, the possibility of hardship or prejudice to either one, and the specific number of days provided for the performance. The Courts are generally not willing to punish a party and have them lose a down payment because of reasonable delays. They will look to the intent of the parties.