Do you know how to count contract days?

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A manual calculator, a toy house, and a fan of $100 bills resting on top of blank forms

11/05/2014 | Author: Editorial Staff

The effective date for my buyer client’s One to Four Family Residential Contract (Resale) is Saturday, Nov. 22. Do I include the weekend when counting days for things like my client’s 10-day option period? How about Thanksgiving, which is next week?

Yes, you count weekends and holidays. TREC and TAR contracts use calendar days, not business days.

Because the period in the Termination Option Paragraph follows the word “within,” you can determine the last day for performance by starting with the day after the effective date as Day One and counting the number of days specified.

Using your client’s termination option as an example, he has until 11:59 p.m. on Nov. 25 to pay the option fee, and if paid, the option period will end at 11:59 p.m. on Dec. 2. If the option fee is not paid by 11:59 p.m. on Nov. 25, the client forfeits the option period and Paragraph 23 of the contract is no longer included in the contract.

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Categories: Forms, Legal
Tags: legal, legal faq, contracts, forms, option period


Comments

Tom Le on 11/26/2014

Thank you! That is the best explanation ever.  Does this rule also apply to the additional fee for the extension of the option period?

Rachel H on 11/06/2014

Great info! Especially for those new to the industry.  Thanks!

Tim Brown on 11/06/2014

Please help agents understand the days AND the fact that the money must be provided. I just today took a contract and asked the agent for the option check. He (shyly) said he “forgot” to get it from the buyer and they are out of town the next 4 days, could I wait until he gets it then?  I politely told him that no money means no option period. Please, we need to raise the bar and keep it there! And I won’t comment further on the brokerage he is sponsored under….

Roberta Blocker on 11/06/2014

Great explanation!  There is a tremendous amount of confusion amongst Realtors about this issue.  Another related point of confusion is whether or not there is an option period if no money is offered to purchase the option period.

kelly huynh on 11/06/2014

Finally,  a straight answer with no hidden meaning where all realtor can use as a guide.  I vote for this to be on exam too.

gerald waldon on 11/05/2014

Best explanation ever! This should be a question on the exam!


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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