Contracts
In Washington, time is of the essence clauses in purchase agreements mean:
ADeadlines are merely guidelines that can be extended informally
BAll deadlines are strictly enforceable and failure to meet them may constitute breach✓ Correct
CThe buyer must close within 30 days by statute
DOnly the closing date is strictly enforced
Explanation
A 'time is of the essence' clause makes all contractual deadlines strictly enforceable. Missing a deadline — such as a contingency removal date or closing date — can constitute breach of contract.
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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.
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