Contracts
In Pennsylvania, a 'time is of the essence' clause in a real estate contract means:
AThe parties must close within 30 days regardless of the agreement date
BDeadlines in the contract are strict and failure to perform by the deadline is a material breach✓ Correct
CThe seller may demand closing anytime with 24 hours notice
DOnly the lender's funding deadline controls the closing date
Explanation
When a Pennsylvania real estate contract includes a 'time is of the essence' clause, all deadlines — inspection periods, mortgage contingency dates, closing date — are strictly enforced. Missing a deadline without an extension can constitute a material breach allowing the other party to cancel.
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