Whether using the Residential Contract for Sale and Purchase[1] or the “As Is” Residential Contract for Sale and Purchase[2], time is calculated the same way under both forms. Both contracts stipulate that “time is of the essence” (which is a “legal” term that means that timing is material to the performance of the contract and may be specifically enforced), making it crucial not to miss a contract deadline by even a single day. Time Periods in Florida Residential Real Estate Contracts
Understanding Time Calculation in Real Estate Contracts
Standard 18F for calculating time in both form contracts reads: Time Periods in Florida Residential Real Estate Contracts
“TIME: Time is of the essence in this Contract. Calendar days, based on where the Property is located, shall be used to compute time periods. Other than time for acceptance and Effective Date as set forth in Paragraph 3, any time periods provided for or dates specified in this Contract, whether preprinted, handwritten, typewritten, or inserted herein, which shall end or occur on a Saturday, Sunday, national legal holiday (as defined in 5 U.S.C. Sec. 6103(a)), or a day on which a national legal public holiday is observed because it fell on a Saturday or Sunday, shall extend to the next calendar day which is not a Saturday, Sunday, national legal public holiday, or a day on which a national legal holiday is observed.”
Since most deadlines are tied to the Effective Date of the contract, it’s essential to confirm this date. Under Paragraph 3(b) of both contracts, the Effective Date is defined as:
“The effective date of this Contract shall be the date when the last one of the Buyer and Seller has signed or initialed and delivered this offer or final counter-offer.”
Let’s assume the following deadlines for illustration purposes:
- Effective Date: August 14, 2024
- Initial Deposit Due: 3 days after the Effective Date
- Closing Date: September 14, 2024
- Paragraph 8b is checked
- Inspection Period: 10 days after the Effective Date
- Title Evidence Deadline: 15 days prior to the Closing Date
Calculating Contract Deadlines
Initial Deposit Calculation: Time Periods in Florida Residential Real Estate Contracts
The Initial Deposit is due 3 days after the Effective Date. Starting from August 14, 2024 (which is not counted as one of the three days):
- Day 1: August 15, 2024
- Day 2: August 16, 2024
- Day 3: August 17, 2024 (a Saturday)
Since August 17, 2024, is a Saturday, the deadline extends to the next calendar day that is NOT a Saturday, a Sunday, a national legal holiday, or a day on which a national legal holiday is observed, which is Monday, August 19, 2024.
Inspection Period Calculation:
The Inspection Period expires 10 days after the Effective Date:
- Day 1: August 15, 2024
- Day 10: August 24, 2024 (a Saturday)
Since August 24, 2024, is a Saturday, the deadline extends to the next calendar day that is NOT a Saturday, a Sunday, a national legal holiday, or a day on which a national legal holiday is observed, which is Monday, August 26, 2024. For an “As Is” Contract, if the buyer wants to terminate the contract, notice must be given no later than 11:59 p.m. on Monday, August 26, 2024.
Title Evidence Deadline Calculation:
The Title Evidence Deadline is 15 days prior to the Closing Date. Starting from the Closing Date and counting backwards:
- Day 1: September 13, 2024
- Day 15: August 30, 2024
NOTE: IF the 15th day before the Closing Date happened to be a Saturday, Sunday, or national legal holiday, the deadline would extend to the next calendar day that is before the Saturday, Sunday, or national legal holiday since the contract requires at least 15 days prior to the Closing Date.
Closing Date Adjustment:
Since the Closing Date is September 14, 2024 (a Saturday), it extends to September 16, 2024, as it falls on a weekend. If “on or before September 14, 2024″ is used, it can be confusing, but the date does still extend, and Closing would need to occur by September 16, 2024 (the following Monday). Using “on or before” requires mutual agreement for closing early, avoiding buyer (or seller) assumptions about mandating an early close.
Key Takeaways
Accurately calculating contract deadlines is crucial. Missteps can result in significant consequences. Should you have questions or need assistance in calculating a contract deadline date, consult with your local real estate attorney to ensure compliance with all deadlines and contract terms. By following these guidelines, the reader can ensure that all deadlines are correctly met, avoiding potential pitfalls in real estate transactions.
[1] (FloridaRealtors/Florida Bar-6x Rev.7/23)
[2] (Florida Realtors/Florida Bar-ASIS-6x Rev.7/23),
