In case you didn’t know, the actions taken on a contract are all tied to the “execution” date, also known as the “final acceptance date” (Texas Association of REALTORS® (TAR) form 1601, pg.7 ). This means that all addenda or agreements with specified deadlines must be fulfilled within the specified time on a calendar day with the first day starting on the day following the date of execution.

The most important time period for a home buyer or seller to consider is the option period, if it has been traded. For simplicity, let’s use a hypothetical contract signed by all parties and executed on December 31 with an option period of ten days. This means that day one of the option period begins on January 1 and ends at midnight on January 10. This option period is often used for property inspections, insurance quotes, and repair negotiations. Once this hurdle is cleared, the assessment and survey follows to complete the closing process.

When it comes to homeowners association documents, surveys, and third-party financing approvals, the same rule applies. If the addenda specify a certain number of days, one must make sure to meet the deadlines or be in default, which is never a good thing.

Remember, the clock starts ticking on the final acceptance date, also known as the execution date or effective date. Professional REALTORS® should always be aware of the time limitations within your contract and should remind you of the date as a buyer or seller. If not, be sure to ask your REALTOR® what the time frame is.