We often receive calls asking when a time period expires or notice must be given if the contract does not explicitly state a time.
Where no time is stated in a contract, the deadline for giving notice or expiration of a time period is at 11:59 p.m. on the date stated in the contract. For example, if the contract requires a Seller’s Disclosure Notice (TXR 1406) to be delivered within 10 days after the effective date, the deadline to do so would be 11:59 p.m. on the 10 day after the effective date. Similarly, if a lease expires on April 15, the tenant would have until 11:59 p.m. on April 15 to move out of the premises.
Alternatively, a deadline that includes a time must be strictly followed. For example, the One to Four Family Residential Contract (Resale) (TXR 1601) requires a buyer to provide a termination notice under Paragraph 23 by 5 p.m. of the agreed upon date to terminate the contract.
Traci Jackson, associate counsel
All times mentioned above are the local time where the property is located.
Great info!
Thank you!
Mary
How does this apply, or not, to the delivery of earnest money on the 3rd day, when every title company I know closes at 5pm.
Its my understanding that 5pm would be the deadline or whatever time the title closes. Time is of the Essence title closing time is the time deadline.
It actually has nothing to do eith earnest money. It as you write up the offer. You always request a Seller’s disclosure when you are about to wrote up a offer.
Ok, 11:50pm, but what timezone?
The time zone the contract/property is in not where the client lives or at least in Texas I believe is the rule.
Same goes for a commercial contract. A day does not end until 11:59pm https://www.austintenantadvisors.com/blog/when-does-a-day-end-on-commercial-real-estate-contracts/
If the title company had an overnight delivery box or one of their reps took possession you would be good if delivered before 11:59PM. The only hard time specified in the contract is the 5pm termination deadline. Like it says above, all other timelines are 11:59pm.
Except Option periods in TX now end at 5:00 pm as well.
Not speaking on option period thats another area. I really try not to use op it can confuse the transaction if not explain properly plus Realtors some thinls it makes them look important to give owner money. Can be a waist.
Gloria, I’m confused; how does the option period confuse the transaction? This is a crucial part of the contract for a buyer so they are protected should they need to terminate because of property condition and the Realtor doesn’t give the owner money, that’s from the buyer.
No you are jumping ahead of yourselves this is as uou write up the offer. You will first always request a sellers disclosure first that way you want need to worry about the time 1 minute before midnight. It should not take 10 days to get it, even if you give the owner 10 days to get it to you.
You will request a Seller’s disclosure from the Sellet’s Agent you are writing a offer up on the property. You type the seller has 10 days to send the seller’s disclosure if a time is not indicated. It is not a area for time. Automatically it is due 1 minute before midnight 11:59.
what happens when the listing agent does not provide a survey within the time frame followed by non delivery of the subdivision information within the time frame stipulated on the contract?
What about this scenario – the day the property is set to close (Friday), buyer asks to extend, seller agrees, but then buyer decides to terminate. Buyer’s agent does not send the signed termination until the next morning (Saturday), even though the buyer signed it the date of closing (Friday). Buyer/buyer agent were asked for an update to extension after 9:00 pm on Friday soas to avoid falling in out of contract or defaulting, neither party replied. By providing it late to the listing agent, has the buyer’s agent, if effect, caused the buyer to be in default?