Time is of the essence
A contract clause that makes every deadline strict. Missing a date, even by a day, can be a breach and can cost the late party their rights under the contract.
Also called: TOE, time of essence clause
Related terms
Failing to do what the contract requires without a legal excuse, such as not closing or missing a deadline. The other side may be able to cancel, keep the deposit or sue.
The date set in the contract for the sale to close. It can move only if both sides sign an amendment.
The date by which the buyer must deliver earnest money after the offer is accepted, often within one to three business days. Missing it can put the buyer in default.
A condition in the contract that must be met for the sale to go forward, such as an inspection, loan approval or appraisal. If it fails within the deadline, the buyer can usually cancel and keep the earnest money.