Is TIME really of the ESSENCE?
TITLE TALK: Is Time (really) of the Essence? A real estate sales contract using the term “time is of the essence” makes it mandatory for both parties to complete their obligations within a specified time.
THIS LANGUAGE ALSO SIGNIFIES THAT THIS AREA OF THE CONTRACT IS A “MATERIAL” PART OF THE CONTRACT.
Failure by either parties to do so will result in a breach of contract or possibly forfeiture of their Earnest Money. The TREC contract references this language in Paragraphs’ 5 and 23. P5 requires the Earnest Money to be deposited in a timely manner are the contract is void. P23 requires the buyer to terminate the contract within the option period to receive the return of their Earnest Money. SO YES TIME IS OF THE ESSENCE!