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In land sale contracts, when is time of the essence?

Bar Exam Prep Real Property Conveyances In land sale contracts, when is time of the essence?
😀 Real Property • Conveyances PROP#163

Legal Definition

Generally, the presumption is that time is not of the essence in land sale contracts, thus the party late in tendering performance can still enforce the contract within a reasonable time after closing (e.g., 2 months). However, time is of the essence when: (1) the contract specifies so, (2) circumstances indicate it was the parties' intent; or (3) one party gives the other notice.

If time is of the essence, a party who fails to tender performance is in breach and cannot enforce the contract.

Plain English Explanation

Generally speaking, there's no rush when it comes to land sale contracts. In fact, unless either (a) the contract explicitly states that "time is of the essence", or (b) the circumstances give rise or notice of such a rush, then, by default, there is no rush. In other words, this means that missing the deadline is not a breach of the contract.

Related Concepts

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