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.
Your Room opens on this part of the sale, with the offer and everything before it already ticked.
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See how it worksWhere this comes up: under contract
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.
| What happens | With time of the essence |
|---|---|
| Closing slips three days with a signed extension | Fine; the new date is the deadline now |
| Closing slips three days with nothing signed | A breach the other side can act on, even over three days |
| Both sides quietly carry on and close June 2 | Often 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
In your Room, this word explains itself where it appears.
Your Room defines time is of the essence in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.