Time is of the essence

A contract phrase making every deadline strict. Miss a deadline and the other side can call default, even by a day. Most residential contracts include it.

Offers & contracts · Updated September 2026

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Part 1 of 4

Why a seller cares

With this phrase in the contract, a deadline missed by a day is a breach. Most residential contracts include it, and it is why an extension has to be signed before the date rather than agreed after.

Part 2 of 4

A simple example

The contract says time is of the essence and closing is May 30. The buyer's lender is ready June 2. Without a signed extension, the buyer missed closing.

Time is of the essence: a simple example
What happensWith time of the essence
Closing slips three days with a signed extensionFine; the new date is the deadline now
Closing slips three days with nothing signedA breach the other side can act on, even over three days
Both sides quietly carry on and close June 2Often fine in practice, but the right to call default was there

The phrase makes dates strict. The fix for a slipping date is a signed extension, before the date.

Part 3 of 4

What people get wrong

That a day or two never matters. With this clause it can, and the side that missed the date is the one exposed.

Part 4 of 4 · where to read next

Where it appears in the sale

What a definition is, and what it isn't

Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.

Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish

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