What is a Time Is of the Essence Notice

What is a Time Is of the Essence Notice?

When a piece of real estate is sold, the parties to the transaction typically set a closing date on which the transaction will actually take place. That date is often included in the sale contract, and there is usually no consequence if one of the parties is unable to close on that date.

But what happens if one party is ready to close and the other party makes it impossible to do so by refusing to attend the closing? In these situations, the party who wishes to force a closing can serve the other party with a “time is of the essence notice” that sets a firm closing date. Typically, in New Jersey, the date set forth in the time is of the essence notice is at least 10 calendar days from the date of the demand. Failure to give the other party adequate time may result in the time is of the essence notice being deemed unenforceable.

The party that is seeking a firm closing date must be prepared to actually close on the date provided. For example, if the seller is seeking to close the transaction, the property must be free from all personal property and have all documents in order. If the buyer has served the seller with a time is of the essence notice, the buyer must have financing in place and be certain that the title company has completed its part in the transaction by that date.

If you have properly served another party with a time is of the essence notice and the party fails to close on that date, you may be able to file a lawsuit in order to recover for your damages. For this reason, it is important to ensure that any time of the essence notice that you serve on the other party is in compliance with the relevant law, which means that anyone seeking to enforce a closing date should consult with an experienced attorney.

Call 201-498-9768 today for more information.

The purchase or sale of real estate is a complicated matter, and anyone who is involved in a real estate transaction should seek competent legal counsel. New Jersey attorney John Schettino is well-versed in New Jersey law and can help ensure that your closing goes as smoothly as possible. For a consultation with Mr. Schettino, call our office today 201-498-9768 or send us an email through our online contact form.