How to Count the Days in a Purchase Contract
Do you know how to count the days in a a purchase contract? Well, you’ve come to the right place to find out. A performance issue came up this morning regarding the escrow timeline we use in California and how to count the days in a purchase contract for performance and contingency release due dates. The questioning agent was a 15-year broker in Sacramento who did not know how to count the days. She had taken a webinar online regarding the revised Residential Purchase Agreement — which is consistently being revised — and did not recall the “change.” I assured her that many real estate agents in Sacramento do not know how to count the days in a purchase contract. She is not alone, even though she works alone.
I tell you, if I ran a one-person brokerage company, which I do not, I would probably be networking like no tomorrow, attending every single S.A.R. meeting, hanging out with real estate lawyers, buying Starbucks gift cards to give away at closings; it’s tough to stay on top of what’s going on when you don’t have a designated broker doing that on your behalf. There are only so many hours in the day . . . but the secrets to my success are my alignment with the largest independently owned brokerage in Sacramento, Lyon Real Estate, and to hire a transaction coordinator who takes care of that stuff for me.
You don’t have to be an expert in everything if you surround yourself with experts.
Sure, I pay so much in TC fees every year that a person could probably live quite well on just the TC fees that my business alone generates. Some agents try to save those fees by doing all the paperwork themselves, and it takes so much time out of your day that you don’t have time to work on new business or monitor your own escrows. Penny wise and pound foolish in my book but to each their own . . ..
However, dull as it may seem to some, I do read the Residential Purchase Agreement. It’s like Yoda! It holds all of the answers to life’s secrets in Sacramento real estate. And, if you’re hung in here thus far, below is the answer about how to count the days.
How to Count the Days for Purchase Contract Performance Issues in California
The way you count the days in a purchase contract for contingency due dates is to first review paragraph 30, Item F, of the Residential Purchase Agreement. “Days” means calendar days. However, after acceptance, the last Day for performance of any act required by this Agreement (including close of escrow) shall not include any Saturday, Sunday, or legal holiday and shall instead be the next Day.
This means if you’re looking for the date to release the home inspections contingency, which by default is 17 days after offer acceptance, you would first count the first day, which is the day after contract acceptance, not the date of acceptance itself. If the final date falls on Saturday, that final date rolls to Monday. If Monday is a holiday, that final date rolls to Tuesday. I hope you have learned something new today about how to count the days for purchase contract performances.
If you’re looking for a top producer Sacramento Realtor, please call Elizabeth Weintraub at 916.233.6759.