Contracts
A 'time is of the essence' clause in a New York real estate contract means:
AThe parties should try to close as soon as possible
BThe closing must occur on the specified date or the non-performing party may be in default✓ Correct
CThe seller must vacate the property the day after closing
DThe broker's commission is forfeited if the deal closes late
Explanation
A 'time is of the essence' clause makes the closing date a strict contractual requirement. If either party fails to perform on that date without excuse, they may be in default, potentially forfeiting deposits or facing a breach of contract claim.
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