Beware of Contract Changes – Good morning, Shana Acquisto Broker of Acquisto Real Estate here on TNT alone, I’m missing my sidekick today, but we’re going to talk a little contract stuff here. So beware of contract changes and the domino effect. Raise your hand if you would love in any transaction to just close as soon as you can. Of course, that’s what we tell you. Get it closed because every day that it does, it is something could happen. What we need to understand is it’s not just up to you.
There’s a lot of people involved in a transaction. There’s typically a lender, the title company, sellers, buyers, maybe they’re sellers and buyers. I mean, you see there’s a domino effect that could happen here. So before you’re quick to say, hey, let’s let’s move up closing, OK, you need to make sure that you talk to all the parties involved and make sure that it works for them. Title companies get very busy. Used to be the end of the month. Now it’s the entire month. Lenders, they have to get the information out there, the documents drawn and pooled and sent to the title company.
So please be aware of of that before you’re just up and making changes in the contract. Think about what change does this affect, who is affected by this change? And make sure all those parties are notified before you even mention it to your client or execute anything. Please, please, please. So anyway, I just want to let you guys know that if you have questions on that, let me know. Think, think, think, think. Because what this is doing is putting a strain on the title companies and the lenders and Stacy.
And you could make this change in all of a sudden the opposite side says, hey, but I can’t already have this deal closing before this can happen. So just know there’s many variables there. Check with everyone, be aware of it. Don’t cause a huge domino file fall. Domino fall. Yeah. So that’s all I’ve got. If you have any more on that topic, we can talk about it tomorrow at meetings tomorrow. All right, so earlier I talked about time is of the essence, and you know what, that’s a word of the day.
Time is of the essence is not a word. It’s more of a phrase. But I felt that it was it was good to touch on today, since we mentioned it earlier. So time is of the essence is a phrase often used in contracts, which in effect says the specified time and dates in this agreement are vital and thus mandatory. And we mean it. I thought that was funny. Therefore, any delay, reasonable or not, slight or not, will be grounds for canceling the contract.
So basically, if you have a contract that is executed, OK, that is. And if it’s in effect, it’s an executed contract in effect, time is of the essence is what we follow. So I’m going to use it in a sentence. OK, maybe this will help. If a contract does not expressly provide or the parties have not manifested such an intent, then time is not of the essence. So if you don’t have execute a contract, you’re just talking about these things. You can’t say, hey, time is of the essence, send it over to me. No, that’s using it. Improper it is. If something is in effect, which is a contract, a contract is in effect.