The most important date on a Florida real estate contract? Not what you think
You might jump in and say “the closing date”? Not the case!
The most important line on a real estate contract is the “effective date”. The effective date is generally the date that the final party (either buyer or seller) signed the contract. This is the date the “clock starts ticking” on the contract and both buyers and sellers are racing toward a closing. Closings mean moving expenses for both sides, appraisal and loan costs and a lot of time packing boxes and making arrangements. So keeping track of the “effective date” is critical for both buyers and sellers. Many closings hit a bumpy road when there is a misunderstanding about the “effective date”. Again, an effective date typically means :
So, on this contract, the last date signed would become the effective date or “8/8/14”
What major issues are affected by an effective date?
- escrow deposits
- loan applications for the buyer
- HOA/Condo Association application fees
- property inspections
- mold/drywall inspections
- title work
- title objections
- closing date
ANY deadline missed by either side is considered a breach of contract and can lead to lost deposits or worse, litigation. Also, make sure to note whether a contract is calendar or business days contract. The deadlines work out differently and contracts vary in which ones they use.
Here is a sample calendar we use in our office for buyers and sellers to track critical deadlines:
Read your contract carefully and follow all the deadlines. Have a question on contracts and deadlines? Please contact us at 305-271-0100×701 or firstname.lastname@example.org.