Question:
What happens if the deposit is not delivered “in time”?
Answer:
If the contract says “upon acceptance”, then a deposit which arrives in 24 hours is late by one second. That’s enough to constitute a breach. The Seller may elect to terminate the deal. It doesn’t “kill the deal”, if the Seller wants to keep it alive. It’s the Seller’s choice. The Seller can relist without notification, sell to another party or take the property off the market and still sue for the amount of the deposit afterwards. A mutual release is never a requirement here.
The “time is of the essemce” clause forces the party to abide by the time limits right down to the specific time mentioned whether that be days, hours, minutes, or seconds.
Be sure to deliver the deposit “on time”. Figure that out when the Offer is submitted. Use “as otherwise described” if you need better arrangements.
Brian Madigan LL.B., Broker