Hi Ruth, well... our Realtor agreements are written in such that you don't have to do anything especially with removal of contingencies. It's just built in the agreement. I've never had to write in "time is of the Essence" but any competent agent knows that nothing really happens on time anyways. We have to be understanding and patient.

Fri Oct 26 2007, 22:51

Since this was a poll type question, I awarded Richard Teran for bringing up a unique perspective. Also ****I WAS WRONG**** IL standard contract does have "Time is of the Essence" in the Performance Section and states it pertains to all dates.

When I was going over a new 12 page version contract with my attorney (instead of the old 4 page version) there were some things that he was surprised that I "caught". He said of the few people that brought up the insurance clause, they all complained. But most people unintentionally ignore it. Even still, I think I had a full page of questions for him.
Ruth

Fri Oct 26 2007, 21:31

Yes, just to confirm, time is of the essence is not preprinted on NJAR contracts (NJ Assoc of Realtors) NJAR contract read.... "Closing will be on or about (date) at (location)." Most closings are with attorneys as the settlement agent. In southern NJ, it is more common to have a title company disperse funds, but the attorney still schedules the closing. In central NJ, the attorneys prepare the HUD and write the checks. Mortgage funds are wired to the attorney trust account. The attorneys set the closing date and time in accordance to 1) their schedule, 2) buyer/seller schedule and then inform the Realtors when closing will be. Closing is typically at the office of the attorney of the buyer, but not always. We have had closings in broker offices or the office of the attorney for the seller.

Sun Sep 30 2007, 18:06

Ed, it is not in pre-printed Illinois contracts or according to Deborah in NJ either. With all the foreclosures, end of the year coming, and because of another poster's question, "time is of the essence" is not something that would be out the window.

I think I need to change my FSBO to "Devil's Advocate" so people don't confuse my philosophical questions with my pending situations. That or I need to go to bed, I think I'm getting grumpy (or is that passionate?).
Ruth

Sat Sep 29 2007, 21:14

Sure. This clause is included in every contract. It is in the pre-printed form.

Doesn't matter though when you have a disagreement between the buyer and the seller.

Time is of the essence is out the window.

In negotiations, If someone doesn't move, someone doesn't talk... the deal is going to die.

So... the first person who talks... looses in most cases.

Sat Sep 29 2007, 19:44

As we learn more about the differences, it brings up more questions about what else might be different. Do both the buyer and seller get attorneys to represent them in typical situations? I've never done a transaction without one. In IL they usually charge a flat rate for standard residential real estate transaction. Any questions that may arise during the course of escrow is covered. In Michigan, we were charged hourly and a dozen email may have cost us as much as a whole closing in IL.

A couple years ago the Northern IL Board of Realtors changed the standard contract to include all the different contingencies and options so that agents weren't acting as attorneys and writing clauses. But even still, there is a standard attorney review clause so that anything that is hand written can be corrected. The attorney starts working from the moment a contract is signed until it closes. Or at least thats how it has been for me for 9 transactions in IL.

Ruth

Sat Sep 29 2007, 19:32

Wow Richard, are you saying that real estate agents never add anything to the standard purchase agreements because that would be considered the practice of law. How do you make sure that the contract address the specific situation of the buyer. I see more offers with addenda containing terms that are not already contained in the standard forms than I see offers that have just the fields completed that are in the C.A.R. purchase agreement forms. Does anyone else share Richard's concern about crossing the line into practicing law without a license. Richard, I am not picking on you. You brought up an interesting issue and I am just curious what other's think about it. We are constantly reminded that we are not supposed to give legal advice, but here we are drafting offers and advising clients left and right what other terms should be in the purchase agreement and if we don't include a term that should have included we are facing a lawsuit.

Sat Sep 29 2007, 11:34

This is why Trulia is so great. We now know to take a closer look when dealing with another state, person from another state or a non-standard contract. I'm sure someone in California would be surprised not to find the clause in IL or NJ and vise versa.

Everyone else, please add your input.
Ruth

Sat Sep 29 2007, 10:57

In Texas, the option period (contingency used primarily to negotiate repairs after inspections) paragraph does include "time is of the essence". For a Realtor to hand-write that phrase into another paragraph would probably be considered the practice of law - my broker wouldn't like that, so I don't do it. In 15 years of practicing Real Estate in San Antonio, I haven't seen another agent do it either. A buyer or seller of course could do it if they so desire - and as a FSBO seller, you can change anything the buyer writes in his offer to be a part of your counter.

Sat Sep 29 2007, 09:33

Time is of the essence is in our standard contract language.

It is important for both the buyer and the seller.

Sat Sep 29 2007, 09:19

Ruth,
Arizona uses a "Time is of the essence" clause. That exact verbiage is boilerplate in the Arizona Association of Realtors standard purchase contract. Our close of escrow is one target date, much like you mentioned. We do not have date ranges here, unless superceded by additional language from the agent(s).

Sat Sep 29 2007, 09:19

Hi Ruth. As Dave and Sheila pointed out, the standard C.A.R. purchase agreement contains boiler plate language and one of the terms is "time is of the essence." Unfortunately, most buyers don't ever read the whole contract before they sign on the dotted line. I always explain the importance of meeting the timelines set forth in the contract and I talk quite a bit about the earnest money and liquidated damages clause. Buyers pay much more attention to these things when they know that they know what can happen when they don't meet the timelines. Time is of the essence is by itself meaningless to most buyers.

The C.A.R. purchase agreement asks for either a specific date for COE or how many days from the date of acceptance escrow should close. If we want it to say “on or before” then we have to handwrite it or address the close of escrow in an addendum to the purchase agreement. I don’t like to say “on or before” because it makes it hard for the seller to know when escrow is supposed to close. I use it only for vacant properties when the seller would prefer to close sooner than later.

Sat Sep 29 2007, 09:17

I see it rarely in contracts, and we proceed with much caution on this.

Sat Sep 29 2007, 08:59

Hi Ruth,
Our standard CAR (California Association of Realtors) contract contains the phrase "time is of the essence".

Sat Sep 29 2007, 08:48