Compliance
Contract Timelines — Day 1: Anatomy of a Contract Timeline
Contract timeline training reviewed effective dates and deadlines, emphasizing the fiduciary duty of agents. Effective Date Determination The effective date is established when the last party signs or initials the final version, becoming day zero for all subsequent deadlines. An offer becomes a legally binding contr…
Contract timeline training reviewed effective dates and deadlines, emphasizing the fiduciary duty of agents. Effective Date Determination The effective date is established when the last party signs or initials the final version, becoming day zero for all subsequent deadlines. An offer becomes a legally binding contract only upon the final party signing and dating/initialing the document. Critical Contract Deadlines Failure to follow critical deadlines, such as the financing contingency or inspection period, can void the contract and lead to the loss of escrow. Agents must track the 10 critical contract dates, ensuring all changes in a counter offer are initialed and dated by all parties. Calendar vs. Business Days The majority of deadlines, including inspection and loan approval, are calculated using calendar days, not business days. If a due date for a financial transaction, such as an initial deposit, falls on a non-business day, the due date automatically shifts to the next business day.
This content is provided for educational purposes. Compliance, contract, and license-law information reflects the instructor's knowledge at the time of recording and may not reflect current law. Always verify with your own broker or legal counsel before acting.