Should I avoid a ‘time of the essence’ clause?

It’s usually better for the buyer and seller to avoid a “time is of the essence” clause. You never know what can happen during the closing process – and sometimes delays are unavoidable. As long as all parties agree on a timeline in good faith, the clause typically isn’t necessary. It’s usually in everyone's best interest to close the deal quickly and smoothly.

What happens after a ‘time is of the essence’ clause passes?

If you don’t meet the dates outlined in a “time is of the essence” clause, you may be in breach of contract. If you’re the seller, this may result in a buyer keeping their earnest money deposit and deciding not to move forward with the deal. However, missing a deadline may or may not be considered a material breach of the contract, depending on your location and the situation.

How long is ‘time is of the essence’ in real estate?

“Time is of the essence” isn’t a standard amount of time in a real estate contract. Instead, it’s a period of time to meet a contractual term. That means a timeline is negotiable and can vary from contract to contract.

Time Is Of The Essence: Defined And Explained