Often contained in a sales contract are “time deadlines to perform”, which can nullify the validity of the contract if the conditions are not met.
Whether you are a buyer or a seller, it is imperative that people or companies you are counting on to perform on your behalf are told the deadline(s) is sooner than it is. This is what I refer to as an ALTERNATIVE deadline, a deadline that you set- NOT the deadline listed on the contract.
The reason you must set an earlier deadline is simple: people tend to leave deadlines for the last minute. Often circumstances arise and as a result, tasks do not get completed as promised. These failed promises can lead to default and can have monetary consequences.
One of our clients recently used their specific lender that promised to complete an appraisal by the date stipulated in the contract (not an ALTERNATIVE DATE set by the buyers), which was secured with a $5,000 non-refundable deposit. As you might guess, the Appraiser had a last minute “continuing education” requirement that he had to satisfy and put the assigned appraisal on the back burner. The appraisal did not get completed on time and the buyers were “on the hook” for $5,000. Fortunately, Crystal and I salvaged the deal and the deposit money, but the end result could have been catastrophic!
Although task performers (Appraisers, Mortgage Lenders, Inspectors, etc.) usually have good intentions when accepting or being assigned a duty, there is typically no financial loss to them personally, if the job is not performed by the contractual requirement dates.
In conclusion, as a participating party to a real estate contract, it is imperative that you establish your own “performance by” date, especially if you are counting on others. Real Estate sales and purchases are “big ticket” items, and the stakes for those participating are large. Don’t put yourself in a vulnerable position! If you implement an early (self-declared) deadline, you will eliminate stress and potential financial losses that may be associated with non-or late performance.