Calculating Dates for Financing

Question:

If the Agreement of Purchase and Sale has accepted at 4pm on Monday and there is a financing condition for 5 banking days. Does the start of the 1st banking day begin on Tuesday or does it start on the day it accepted which was Monday?

So if it starts on Monday, the deadline for the 5 banking days would be the end of Friday.

But if it starts on Tuesday, the 5 banking days deadline would be the end of next Monday. Which is it?

Answer:

Monday is Day 0, Tuesday is Day 1

Be very, very careful of banking days. It has no meaning or accepted definition unless it happens to be defined in the Agreement somewhere.

Many brokerages will define it in their Schedule B.

Also, don’t use business days, for exactly the same reason.

Use calendar days, if you have to.

Better to use a specific date like March 14th, 2022

Everyone knows what day that is. There’s no counting and no confusion.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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