Understanding Purchase Contract Time FramesTeddy Runge, November 7, 2016 in Contract, Real Estate, Time Frames
The California Purchase Contract is chock-full of deadlines: three days to place a deposit into escrow; 17 days to perform investigations; scheduling utilities, organizing closing, and many other important details. But one of the most frequently asked questions involves time frames relative to calendar dates. So below are three critical rules involved in each transaction.
Three Rules to Time Frames
- RULE No. 1: Acceptance. Day of acceptance is perhaps the most important rule, considering all other time periods depend on it. “Acceptance” is the day when the offer or (counter offer) is accepted in writing and then delivered back and personally received by the other party. Only when this occurs is there a binding contract. The next day after acceptance is considered day one.
- RULE No. 2: Count every day. In all the C.A.R purchase agreements, “days” mean calendar days. Everyday must be counted regardless if it’s a weekday, weekend, or holiday. There are two exceptions here. The escrow deposit is the first exception and allows for three “business” days. The second exception is when the last day falls on a Saturday, Sunday, or holiday.
- RULE No. 3: If the last day falls on a weekend or holiday, skip to the the next business day. Per the C.A.R contracts, you skip to the next business day when the last day for the performance of any act required by the agreement” falls on Saturday, Sunday, or holiday.