Wednesday, October 31, 2007
Mind those dates
States handle the sale of real estate in different ways. In New York, for example, the settlement date can be an approximation of when the settlement will actually occur. Here's why. In the contract, the language of the agreement states that settlement will occur on or about a certain date. That gives both buyers and sellers some flexibility.
In Pennsylvania, however, the contract plainly states that "time is of the essence,'' and that the dates mentioned in the contract are binding. That means that we have to adhere to those dates, unless both the buyer and the seller agree to a change. That happens, but when it comes to changing the settlement date, things can get dicey, because the side not requesting the change is wary of it. For one thing, it can signal that the deal is in trouble. Secondly, because the dates in the contract are binding, each side in the deal has an expectation the deal will be settled on the date previously agreed to. They have made arrangements for housing, movers, help, etc., and changing those things can be extremely tough.
In Pennsylvania, however, the contract plainly states that "time is of the essence,'' and that the dates mentioned in the contract are binding. That means that we have to adhere to those dates, unless both the buyer and the seller agree to a change. That happens, but when it comes to changing the settlement date, things can get dicey, because the side not requesting the change is wary of it. For one thing, it can signal that the deal is in trouble. Secondly, because the dates in the contract are binding, each side in the deal has an expectation the deal will be settled on the date previously agreed to. They have made arrangements for housing, movers, help, etc., and changing those things can be extremely tough.
