Navigating Deadline Extensions in Florida Real Estate Transactions
If you’re buying or selling a home this time of year, as you’re busy planning and enjoying your holiday festivities, it’s important to be aware of how holidays can affect deadlines of your home buying or selling process.
Florida real estate transactions rely heavily on timely action and compliance. As they say, Time is of the Essence. The Far/Bar Residential Contracts for Sale and Purchase (both the Standard and AS IS versions) set clear deadlines for various actions. Understanding how these deadlines are calculated, particularly when holidays are involved, is crucial.
What does the Far/Bar say?
As it relates to deadlines, fortunately, the Far/Bar Residential contracts are very clear and formulaic in their approach to dealing with deadlines:
“Standard F. TIME: Time is of the essence in this Contract. Calendar days, based on where the Property is located, shall be used in computing time periods. Other than time for acceptance and Effective Date as set forth in Paragraph 3, any time periods provided for or dates specified in this Contract, whether preprinted, handwritten, typewritten or inserted herein, which shall end on a Saturday, Sunday, national legal public holiday (as defined in 5 U.S.C. Sec. 6103(a)), or a day on which a national legal public holiday is observed because it fell on a Saturday or Sunday, shall extend to the next calendar day which is not a Saturday, Sunday, national legal public holiday, or a day on which a national legal public holiday is observed.”
– Far/Bar Version 6xx
What is a National Legal Public Holiday?
A National Legal Public Holiday is a holiday that falls on certain days designated by the U.S. federal government as non-working days. They are established by Title 5 of the United States Code, Section 6103. These holidays are observed by the federal government and, though not required, also by many private businesses, including those involved in real estate transactions.
The National Legal Public Holidays Are:
- New Year’s Day
- Birthday of Martin Luther King, Jr.
- Washington’s Birthday
- Memorial Day
- Juneteenth
- Independence Day
- Labor Day
- Columbus Day
- Veterans Day
- Thanksgiving Day
- Christmas Day
See below for a list of holidays that are notably absent from this list.
What’s this all mean, Joe?
Typically, deadlines under the Far/Bar Residential contracts are calculated in calendar days. This means that every day within that period, including weekends and holidays, counts towards the total number of days, with the exception of the very last day, which is the important day for these purposes. If that last day falls on a weekend or a National Legal Public Holiday, then the extension provision in the Time Standard is triggered. For instance, if a buyer has a 15-day inspection period, all of the weekend days and any holidays count towards the total. But if the 15th day is a weekend or holiday, it will roll the first day that is neither of those things.
Let’s explore a couple of examples:
Example 1: Deadline Falls on a Weekend
Let’s say your real estate contract stipulates that the initial escrow deposit is due 3 days from the Effective Date, which, in this scenario is a Wednesday, and so the escrow deadline technically falls on a Saturday.
Result:
Since the 3rd day is a weekend day, the initial escrow due date automatically extends to the next business day. This would be the Monday immediately following the Saturday, giving the buyer two additional days to make the deposit.
Example 2: Holiday and Weekend Delay
Let’s use the same scenario as above, in that the escrow deposit due date falls on a Saturday. However, let’s now pretend that the Monday is Labor Day, which is on the list of National Legal Public Holidays.
Result:
In this scenario, the escrow due date automatically extends to the Tuesday immediately following Labor Day, now giving the buyer 3 extra days of to deposit escrow with the escrow agent.
Pro Tip: Effective Date and Time for Acceptance can fall on a weekend or a National Legal Public Holiday, as the Time Standard specifically says so. There is no extension for these under the standard contract language.
Consulting a Real Estate Professional
While the Far/Bar Residential Contracts provide a solid framework, it’s always advisable to consult with a knowledgeable real estate attorney or agent. They can help you understand the specific nuances of your contract, answer any questions, and ensure that you meet all deadlines, especially during the holiday season.
By understanding these rules and seeking professional advice, you will be on the right path of dealing with deadlines and achieving a successful closing. Most importantly, you will keep your holidays happy in the process.
Season’s Greetings!
Notably Absent
Below is a list of holidays that are recognized by a great number of people which do not appear on the list of National Legal Public Holidays and, therefore, do not prompt an extension of a deadline should a period end on such a date. Did I miss any? Let me know in the comments.
- Cinco de Mayo
- St. Patrick’s Day
- Good Friday
- Kwanzaa
- Valentine’s Day (sorry, Lovers!)
- Indigenous Peoples’ Day
- Yom Kippur
- Black Friday (day after Thanksgiving)
- New Year’s Eve
- Christmas Eve
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