Sandra, a buyer's broker in Colorado, submits an offer on behalf of her client using the CREC Contract to Buy and Sell Real Estate. The contract specifies that the earnest money deposit of $10,000 must be delivered to the closing company within three days of acceptance. The seller accepts and signs the contract on Monday. By what day must the earnest money be delivered?
Correct Answer
B) Thursday, because the day of acceptance is not counted and three days are then calculated
Under the CREC Contract to Buy and Sell Real Estate, when counting days for deadlines, the day of the event (in this case, acceptance on Monday) is not counted. The count begins on the following day (Tuesday), making the three-day deadline fall on Thursday. This is consistent with how the CBS form defines 'days' for deadline calculations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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