What is the deadline for your buyer to pay an option fee?
09/30/2016 | Author: TAR Legal Staff
What time does the option fee need to be paid by under Paragraph 23 in the One to Four Family Residential Contract (Resale)?
The buyer is required to pay the option fee within three days after the effective date of the contract. As no time deadline is specified, the option fee must be paid to the seller no later than 11:59 p.m. on the third day after the effective date. For example, if the contract effective date is October 1, the option fee must be paid by 11:59 p.m. October 4.
The 5 p.m. deadline for the option period in Paragraph 23 applies only to the notice of termination and does not affect when the option fee must be paid.
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