Contracts
In a real estate contract, 'time is of the essence' means:
AClosing must occur within 30 days regardless of the agreed date
BAll contract deadlines are strict and failure to meet them may constitute a material breach✓ Correct
CThe contract automatically renews if not closed within 60 days
DThe seller may change the closing date without notice
Explanation
When 'time is of the essence' is stated, all dates and deadlines in the contract are strictly binding. Missing a deadline without waiver is treated as a material breach.
People Also Study
Related Arkansas Questions
Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Study This Topic
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →