Contracts

Vermont's 'time is of the essence' clause most commonly affects:

AThe agent's commission payment timeline
BThe buyer's and seller's obligation to perform by the specified closing date✓ Correct
CThe lender's rate lock period
DThe title company's search deadline

Explanation

A 'time is of the essence' clause makes the closing date a strict contractual deadline. If either party fails to perform by that date without mutual agreement to extend, the other party may have grounds for breach.

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