"On", "On or About" and "Time of Essence"

The Law Offices of Ronald S. Kahn & Associates

Real Estate: "On", "On or About "and "Time of Essence"

Keywords: Time of the Essence; Closing

When will I close Title? "On", "on or about" or "time of the essence". A typical real estate coop or condo contract will state:

"Closing will occur at 10:00 am on [on or about] month, day year, [time being of the essence]".

Talk to almost any person or even an attorney and each will invariably say that a party is entitled to an adjournment of 10 days, 2 weeks, a month for any or no reason whatsoever.

No! No! No! That ain't so. The rule is that a party is entitled to a "reasonable" adjournment. Reasonable is defined by the circumstances.

The phrase "on or about" means what it says. Closing will occur at apporximately or around or near the date specified. It means there is latitude in the actual closing date.

On the other hand language such as "on" or "or before" has resulted in a split between the courts. I would suggest that such language could create an unintentional "Time of the Essence".

Time of the Essence says exactly what it means: Close on the date specified or be in default. And default for a buyer is generally loss of his/her down payment.

Time of the essence can be established either by stating it in the contract or by a party declaring time of the essence by notice to the other party.

Don't be caught in a trap. Read the contract carefully.

Ronald S. Kahn

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