How to count “days” in a Real Estate contract.
So, it’s the Friday before President’s Day Weekend and you’ve signed your agreement and now you have 3 days until your first deadline. But how do you count the days? Is President’s Day a Holiday? Do you start counting on Friday or Saturday?
Here are some helpful tips on counting days in a real estate contract.
Definition of “Day”: All calendar days are considered “days.” If the contract specifies “business days,” this would not include weekends or legal holidays.
How to count: Once the final agreement is signed by the last party and delivered to the other party, the counting begins! The next day is the first day of the countdown. In the example above, the counting starts Saturday (Day 1) and the deadline is Monday. Unless, of course, you are talking about the California Association of Realtors (CAR) Purchase Agreement.
California Association of Realtors (CAR) Purchase Agreement.
The CAR agreement specifies that if the last day of performance of any act (including close of escrow) falls on a Saturday, Sunday or Legal Holiday, it will be postponed to the next day. (see Paragraph 22.E)
So, in our example, above, the three days, which ends on a President’s Day (which is a Legal Holiday), would be postponed to the next day, Tuesday.
But there is more!
The CAR Purchase Agreement also says that the rules about weekends and holidays only applies after the agreement is accepted by all parties. So, during the period where the parties are signing offers and counter offers, the expiration of these agreements can fall on a weekend or holiday. In addition, the clock starts ticking on these form offer/counteroffer agreements when the offer is signed by the buyer, not when it is delivered to the seller! (see Paragraph 29)
So, what are the Federal Legal Holidays, anyway?
New Year’s Day
Martin Luther King Jr.’s Birthday
Thank you to Broker Risk Management for giving us the idea to write about this topic!