Understanding and Calculating Dates in a Real Estate Contract

03/3/14


Since there is no Florida law that governs computation of time in all contracts, the language in the contract itself is critical. The effective date (when the last party signs or initials and delivers the offer or final counteroffer) is used for calculating many time periods in real estate contracts so you must know when the effective date is.

Standard F establishes that, except for the effective date and time for acceptance, CALENDAR days are to be used when counting. Time periods or dates ending or occurring on a weekend or national legal holiday extend to 5 PM of the next business day. Here is a great example for you.

The effective date is Monday November 24, 2014, the second escrow deposit is due "within 5 days after effective date." That escrow is due Monday December 1, 2014 by 5:00 PM and here's why.

Monday November 24 is not counted because its the effective date. Tuesday November 25 is Day 1. Wednesday November 26 is Day 2. Thursday November 27 is Day 3 (counted, even though its Thanksgiving, a national legal holiday) remember we count Calendar Days. Friday November 28 is Day 4. Saturday November 29 is not counted because its the last day of the time period (day 5) and it falls on a weekend. Sunday November 30 does not count because its not the next business day. The escrow is due Monday December 1st by 5 PM.

This blog comes from the March 2014 Law & Ethics section of the Florida Realtor Magazine.

Warmest Regards,

Kevin Aizenshtat
Realtor
239-777-1451
kevin@gcipnaples.com



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