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Counting Days in the Real Estate World

You may wonder what I'm talking about when I refer to "Counting Days" but it's an interesting topic which has caused a lot of confusion in the real estate world.

Here is an overview:

  • Calendar days are just that....each day on the calendar.

  • Business days are usually referenced as Monday through Friday except when there is an official holiday.

  • We use business days whenever we have financial events that require a deposit of funds. Monday through Friday except when there is a federal holiday. If the contract says funds are due on day 3 but day 3 falls on a Sunday....funds will be due on Monday.

  • We start counting days the first calendar day AFTER the date of acceptance

  • Due dates and expirations are extended to the first business day if they fall on the weekend or holiday

  • The day ends at 11:59pm

Here is an example:

Once we get an accepted contract, we start counting days to clearly define contingency periods, close of escrow and other contractual obligations.

Day 1 begins the first day after a contract has been accepted regardless of when during that day you accepted the contract. Let's say contract is signed at 12:00pm on January 1, first day begins the following morning on January 2.

If a contingency is due in 7 days, January 8th is the marker but because it falls on a Sunday, the due date is moved to the next business day which is January 9th

Is this really important? Yes, indeed! Each party has the right to issue a Notice to Perform and if the affected party does not perform by the deadline, cancellation is an option. Understanding deadlines is essential to performance so having a timeline will help you stay on track.


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